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London  &  Paris  Exchange, 

AuttLorised  Capital 


Managing  Direetor      -      -      A.  M.  MANDEVILLE,  Esq. 

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Brighton— 150,  North  Street. 
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IN    THE 




(Author  of  "Our  Clearing  System  and  Clearing  Bouses"  "Banking  Statistics,** 

"  The  Three  Croivns,"  *^ Somme  OLde  Curiosities"  '^Barclay  d:  Company, 

Limited"  ** History  of  Greenwich  and  Blackheath,  dec,  dc,  dsc) 

Of  THI 






Digitized  by  the  Internet  Archive 

in  2007  with  funding  from 

IVIicrosoft  Corporation 

Of  THE 



In  this  book  will  be  found  a  history  of  the  various 
banks  which  enjoy  the  privilege  of  having  a  seat  in 
the  London  Bankers'  Clearing  House — the  most  im- 
portant financial  institution  in  the  world.  The  pro- 
gress of  each  has  been  faithfully  recorded,  whether 
favourable  or  otherwise,  and  the  statements  and  criti- 
cisms may  be  regarded  as  absolutely  fair,  coming  as 
they  do  from  the  pen  of  a  financial  writer  of  many 
years  standing. 

The  history  of  the  Bank  of  England  is  not  given 
in  this  book  for  two  reasons.  First,  this  bank  is,  so 
to  speak,  but  half  a  member,  as  it  only  *' clears"  on 
one  side ;  secondly,  it  would  be  an  absolute  impossi- 
bility to  condense  into  a  few  pages  the  marvellous 
tale  of  existence  of  the  *'  Old  Lady  of  Threadneedle 
Street " — her  vagaries  have  been  so  extensive  that  an 
account  of  them  must  be  deferred  to  a  separate 


It  has  been  my  endeavour  to  give  a  fair  and 
absolutely  unbiassed  review  of  the  various  banks  in 
the  **  House,"  and  if  my  work  meets  with  the 
approval  of  bank  and  financial  ofl&cials,  I  shall  be 
more  than  satisfied. 

As  some  of  the  banks  have  their  shareholders' 
meetings  annually  only,  it  has  occurred  to  me,  as 
being  most  fair  to  take,  as  frequently  as  possible,  for 
the  purposes  of  comparison,  the  balance-sheets  for  the 
year  ended  81st  December  last. 

The  word  of  **  amalgamation  "  has  gone  forth. 
The  present  lull  is  only  temporary;  jealous  eyes  are 
being  cast  on  the  few  remaining  private  banks  in 
the  provinces — most,  if  not  all  of  which,  must  sooner 
or  later  succumb  to  the  wiles  of  the  enterprising 
joint  stock  banks,  and  a  number  of  the  existing  joint 
stock  banks  are  regarded  as  likely  acquisitions.  But, 
and  this  is  important,  there  can  be  no  possible  doubt 
that  it  will  be  as  difficult  half-a- century  hence  as  to- 
day, for  any  strange  bank  to  procure  a  seat  in  the 
"Holy  of  Holies"— the  Temple  in  Post  Office  Court, 
Lombard  Street. 

During  more  than  a  century  this  centre,  this  pulse 
of   the    financial    world,   has  followed  its  own  course 


quietly,  unostentatiously,  has  maintained  its  authority 
with  dignity,  and  has  taught  a  lesson  to  all  similar 
imitators,  in  the  provinces,  on  the  Continent,  and  in 
America.  The  future  of  the  Clearing  system  is  "pro- 
gress and  extension,"  and  it  may  yet  be  that  in  a 
few  years  time  the  clientele  of  the  "  House "  may  be 
so  altered  that  another  book  on  this  subject  may  have 
to  be  written  by 

New  Cross,  London,  S.E. 
May,  1905. 



The    London    Bankers'  Cleabing   House 




The   London   Bankers'   Oleartng    House, 




Barclay   &   Company 



Capital   &   Counties 




Glyn,   Mills   &   Company... 








London   &   County 



London   &   South- Western 



London   &   Westminster  ... 




London,   City   &   Midland 




London   Joint- Stock 








Metropolitan    (of   England 

AND    WaTiEs) 







National  Provincial 








KoBARTS,   Lubbock   &   Co. 




Union   of  London   &    Smith' 

8   Bank 



Willlvms,  Deacon's  Bank 







The  London  Bankers*  Clearing  House. 

The  London  Bankers'  Clearing  House  has  been  aptly 
called  the  pulse  of  the  financial  world.  There  are 
probably  few,  if  any,  institutions,  where  such  an  enor- 
mous business  is  transacted  year  by  year.  The  total 
paid  clearing  for  1904,  for  instance,  reached  the  enor- 
mous aggregate  of  more  than  £11,000,000,000.  But 
like  all  very  old  institutions  there  is  a  veil  of  mystery 
hanging  over  its  origin.  No  one  seems  to  know 
exactly  when  the  clearing  system  was  started,  or 
whether  in  this  country  or  any  other.  If  in  another 
country,   then    it    must    have  been    lost    sight    of   for 


many  years,  and  "re-invented"  in  England.  There 
seems  no  doubt  that  it  was  established  before  1778.* 
An  old  guide-book  to  London  states,  "  The  practice  of 
clearing  is  said  to  be  above  a  century  old,  the  banks 
employing  clerks  called  "clearers,"  who  used  to  settle 
their  accounts  on  the  top  of  a  post,  or  on  one  another's 
backs,  in  Lombard  Street,  and  very  often  resorted  to 
one  banking-house,  which  had  a  large  recess  in  the 
window,  which  they  found  very  convenient,  but  the 
house  in  question  found  just  the  opposite,  and  the 
noise  made  such  a  hindrance  to  business  that,  it  is 
said,  they  were  often  summarily  turned  out.  This  led 
to  a  house  being  taken  in  1810,  and  the  organization 
of  a  system  admirable  in  its  simple  arrangements." 
To  this  we  may  add  we  have  heard  that  the  early 
clearing  transactions  were  often  carried  on  in  a  friendly 
public-house.  It  appears  very  probable  that  **  The 
Grasshopper"  was  the  rendezvous  referred  to  in  the 
above  extract,  but  an  entry  in  the  books  of  Messrs. 
Martin  &  Co.  in  1773,  "  Quarterly  charge  for  the  use 
of    clearing-room,   19s.   6d.,"   gives   an    earlier  date  to 

*  Lawson,  in  his   "History  of  Banking"   (p.  316),  dates  the 
establishment  of  the  Ciearing-House  at  1753. 


its  establishment.*  From  an  article  on  the  Clearing 
House  we  take  the  following  extract :  "In  1775 
a  building  in  Lombard  Street  was  set  apart  for  the 
use  of  bankers,  in  which  they  might  exchange  drafts, 
bills,  securities,  and  thereby  save  labour,  and  curtail  the 
amount  of  floating  cash  requisite  to  meet  the  settle- 
ment of  the  different  houses  if  effected  singly."! 

Mr.  Barnett  thinks  that  **in  the  early  days  of  clear- 
ing the  clerks  used  to  meet  in  a  room  in  the  banking- 
house  of  Messrs.  Smith,  Payne,  &  Smiths,  but,  in 
1841,  removed  to  their  present  Clearing  House." 
Some  years  ago  Messrs.  Smith  stated  that  they  had 
no  record  which  enabled  them  to  speak  with  any 
degree  of  certainty  as  to  the  accuracy  of  that  asser- 
tion, but  they  learned  from  a  gentleman  in  their 
employ  that  so  early  as  1827  **the  Clearing  House 
or  office  adjoined  the  bank,  of  which  it   formed  "part." 

With  regard  to  the  establishment  of  the  clearing 
system  we  cull  the  following :  Possibly  the  principles 
of  the  Clearing  House  were  first  understood  and  acted 
upon  by  bank  clerks  and  messengers  rather  than  by 
the    bankers    and    bank    managers    themselves.      Those 

*  ''The  Grasshopper,"  by  Mr.  J.  B.  Martin, 
t  Haydn. 

employes,  even  then  so  it  seems,  averse  to  unnecessary 
work,  and  ready  to  resort  to  any  expedient  which 
would  in  the  slightest  degree  lessen  their  labours, 
came  to  the  conclusion  that  much  time  would  be 
saved  if  they  were  to  meet  to  exchange  the  bundles  of 
cheques,  &c.,  which  they  were  sent  to  collect  instead 
of  presenting  them  for  payment  at  the  counters  of 
the  various  bankers.  For  this  purpose  the  top  of  a 
post,  or  the  corner  of  a  street,  was  oft-times  selected. 
In  a  neighbouring  court  was  a  convenient  tavern,  so 
this  was  chosen  as  a  rendezvous,  as  an  improvement 
on  the  transactions  in  the  open  streets.  We  have 
heard  that  the  whole  arrangement  was  come  to  in 
a  public-house  to  which  the  messengers  and  others 
made  a  practice  of  resorting.  What  more  natural  than 
that  two  or  three  bank  officials  should  there  meet 
and  discuss  their  views  on  banking  in  general  and 
for  their  own  establishments  in  particular  !  Perhaps  in 
the  course  of  discussion  one  man,  say,  from  "Kobarts," 
compared  his  •' charge"  with  that  of  the  clerk  of 
another  bank,  say,  **  Glyn's,"  and  suddenly,  as  by 
inspiration,  this  suggestion  was  made,  and  acted 
upon :  The  clerk  from  Robarts'  listed  all  the  cheques 
and   drafts   he   had  on  Glyn's,  and   Glyn's   clerk   made 

a  similar  catalogue  of  all  the  drafts,  &c.,  he  held  on 
Robarts ;  they  next  exchanged  parcels,  and  returned 
each  to  his  own  bankf  agreeing  to  meet  again  later 
on.  In  the  interim  the  cheques  taken  to  each  bank 
were  examined.  The  messengers  or  clerks  returning  to 
the  appointed  place  as  agreed,  some  such  conversa- 
tion as  this  probably  took  place  between  them :  Glyn's 
man,  "Robarts,  we  have  a  charge  of  £9,056  17s.  8d. 
on  you  and  you  have  a  charge  of  £10,187  8s.  9d.  on 
us ;  as  all  our  respective  cheques  are  good  we  have 
to  pay  you  (£10,187  3s.  9d.  less  £9,056  17s.  8d.) 
£1,130  6s.  Id."  The  balance  of  the  transaction  was 
then  paid  in  notes  and  gold  by  Glyn's  man  to  the 
representative   of  Robarts'   bank. 

This  is  very  probably  how  the  system  of  "  clearing '! 
originated,  commending  itself  by  its  very  simplicity. 
For,  referring  to  the  hypothetical  example  just  given, 
had  it  not  been  for  so  easy  an  arrangement  each 
bank  must,  of  necessity,  have  paid  the  other  in  full — 
that  is  in  notes  and  gold.  In  other  words,  £19,244  Is.  6d. 
would  have  changed  hands  instead  of  the  comparatively 
small  amount  of  £1,180  6s.  Id.  The  plan  adopted 
by  the  clerks,  although  known  and  winked  at  by  the 
officials,   at    last    demanded    attention    because    of    the 


dangers  attendant  upon  it.  The  principle  was,  how- 
ever, recognized,  with  the  result  that,  in  1810, 
a  house  was  taken  for  the  sole  purpose  of  *'  clearing." 

We  find  that  Mr.  John  White  was  an  inspector  of 
the  Clearing  House  in  1818,  but  we  cannot  trace 
who  held  that  responsible  position  before  him.  His 
salary,  as  president  or  inspector,  appears  to  have  been 
dBlOO  per  annum.  He  was  succeeded  by  a  Mr.  Henna, 
who  was  followed  by  Mr.  John  Pocock ;  he,  in  his 
turn,  was  succeeded  by  Mr.  George  Derbyshire,  who 
for  many  years  had  as  his  assistant  Mr.  Pocock. 
On  the  retirement  of  Mr.  Derbyshire,  Mr.  Pocock 
was  elected  chief  inspector,  with  Mr.  P.  Matthews 
(of  Barclay  &  Co.,  Ltd.)  as  assistant.  On  Mr.  Pocock's 
retirement  Mr,  Matthews  was  elected  chief  inspector, 
which  exalted  position  he  still  holds.  His  sound 
financial  knowledge  and  business  abilities  have  long 
since  proved  to  the  whole  of  the  banking  world  the 
wisdom  of  the  committee  in  their  selectien  of  a  fitting 
successor  to  Mr.  Pocock. 

The  year  1854  is  remarkable  in  the  annals  of  the 
"House"  for  two  great  innovations — (1)  the  admis- 
sion of  joint-stock  bankers  over  the  sacred  threshold 
of    the   Temple  of  Mammon,  and   (2)  the  balances  for 

the  first  time  being  settled  by  transfer,  or  drafts,  on 
the  Bank  of  England.  Widely  different  impressions 
obtained  as  to  the  extent  of  the  economy  effected 
in  the  bank-note  circulation  by  this  arrangement. 
Mr.  Barnett  says,  "  An  examination  of  the  return  of 
the  daily  transactions  of  the  Clearing  House  for  1889 
will  show  that  the  largest  amount  of  bank-notes  used 
in  one  day  for  the  payment  of  balances  was  £593,300, 
the  smallest  dB  108, 000,  and  the  average  for  the  year 
£213,100.  Mr.  George  Derbyshire  has  been  good 
enough,  with  the  sanction  of  cur  president,  to  give  the 
aggregate  balances  for  1879-80,  and  I  find  that  they 
range  from  £1,140,000  to  £5,534,000,  giving  a  daily 
average  of  £2,068,000.  Thus  whilst  the  totals  of  the  clear- 
ing increased  in  the  period  1889-79  from  £954,000,000 
to  £5,266,000,000  or  by  some  450  per  cent.,  the  average 
balances  increased  by   900  per  cent."* 

To  Mr.  Derbyshire  is  due  the  honour  of  being  the 
gentleman  by  whose  instrumentability  the  grandest  of 
all  the  various  alterations  in  the  transaction  of  clear- 
ing business  is  due — the  payment  of  balances  by  trans- 
fer.    The  plan  was  originally  proposed  by  Mr.  Babbage, 

*  ♦'  Effect  of  the  Development  of  Banking  Facilities  upon  the 
Circulation  of  the  Country"  (pp.  80  and  81).- 


but  was  opposed  by  the  majority  of  bankers. 
Mr.  Derbyshire  urged  the  matter  most  strongly,  and 
it  was  decided  at  a  meeting  held  at  the  Bank  of 
England  that  the  plan  of  settlement  by  transfer  should 
be  adopted. 

The  earliest  authentic  record  we  can  find  of  the 
amount  of  paid  clearing  is  in  the  report  of  the  Com- 
mittee of  the  House  of  Commons  on  Banks  of  Issue 
dated  1840,  which  shows  that  in  the  previous  year 
the  total  amount  of  clearing  paid  through  the  House 
was  £964,401,600.  Compare  that  with  the  total  of 
more  than  £11,000,000,000  of  to-day,  and  one  can 
grasp  in  a  moment  the  fact  that  not  only  the  Clear- 
ing House,  but  the  world  generally,  must  have  made 
enormous  strides.  As  we  have  already  said,  the  Clear- 
ing House  is  the  great  pulse  of  the  financial  world, 
and  by  its  returns  one  can  easily  gauge  the  state  of 
trade — its  progress   or   decadence. 

The  country  clearing  system  is  a  modification  of  the 
town  clearing,  and  has  been  established  some  forty- 
five  years.  The  whole  credit  of  this  magnificent  addition 
to  the  work  already  referred  to,  so  far  as  London 
cheques  and  drafts  are  concerned,  is  due  to  the 
Lord  Avebury,   one  of   the    greatest    living    authorities 


on  banking  matters.  At  first  it  seemed  as  though  the 
proposal  could  not  work,  but  as  soon  as  a  trial  was 
given  it  turned  out  an  enormous  success,  and  has 
largely  contributed  to  the  welfare  and  comfort  of 
citizens  in  the  provinces.  The  number  of  cheques 
passed  through  the  country  clearing  is  tremendous  by 
reason  of  the  average  value  of  each  being  so  much 
smaller  than  that  of  the  drafts  passing  through  the^ 
town  department.  We  do  not  think  for  a  single 
second  that  Sir  John  Lubbock  adequately  conceived 
the  magnitude  and  far  reaching  effects  of  his  proposal. 
It  was  for  the  present  chief  inspector,  Mr.  Philip 
Matthews  to  differentiate  between  the  ''town"  and 
"country"  paid  clearing,  and  it  is  under  his  regime 
that  we  are  able  in  the  weekly  returns  to  learn  how 
much  of  the  enormous  aggregate  is  due  to  London, 
and  how  much  to  country  business.  One  thing  is 
quite  certain,  that  when  the  return  under  the  new 
plan  was  first  made  the  bankers,  not  only  in  London, 
but  all  over  the  country,  were  astonished  to  learn 
the  dimensions  to  which  the  clearing  business — other 
than  London — had  grown.  Were  greater  facilities  to 
be  offered  in  hours  and  accommodation  it  is  more 
than  probable  that  one  would  see  the  country  clear- 
ing returns  increase  by   leaps   and  bounds. 


It  is  impossible  for  us  in  this  work  to  give 
detailed  statemeDts  as  to  how  the  system  works  or 
an  analysed  precis  of  the  returns.  Suflfice  it  to  say 
that  as  our  plan  has  been  adopted  not  only  in  the 
provinces  and  the  colonies,  but  also  in  foreign  countries 
and  America,  that  surely  is  a  sufficiently  strong  impri- 
mature  as  to  its  utility  and  efficacy.  With  the  exten- 
sion of  the  building  in  recent  years  work  has  been 
greatly  faciUtated  in  Post  Office  Court,  Lombard  Street, 
but  there  still  remains  plenty  of  room  for  extension 
if  only  circumstances  served.  But  situated  as  it  is  in 
the  very  heart  of  the  City,  and  hemmed  in  as  it  is 
by  buildings  occupied  by  important  insurance  and 
other  companies,  it  almost  seems  as  though  the  com- 
mittee have  reached  the  end  of  their  tether  so  far 
as  further  extension  is  concerned. 

It  is  a  great  pity,  since  with  a  larger  and  more 
commodious  building  it  is  probable  that  the  Scotch 
and  Irish  banks  might  be  admitted  as  well  as  two  or 
more  important  institutions  in  the  metropolis  now 
clearing  through  other  companies. 



The  London  Clearing  House,  1854-1904. 
The  Changes  op  Fifty  Years. 

It  is  always  interesting  to  glance  back  at  the  history 
of  old  institutions,  and  still  more  fascinating  when  they 
happen  to  have  a  history  all  their  own.  In  the 
previous  chapter  we  have  given  a  summarised  account 
of  the  Clearing  House,  although  we  could  not  record 
a  list  of  its  earliest  members.  Here  we  take  a  retro- 
spect of  half  a  century,  and  all  those  in  any  way  con- 
nected with  the  banking  world  will  at  once  recognise 
the  strange  alterations  which  have  taken  place  during 
that  period  in  its  denizens.  The  old  generation  has 
passed,  or  nearly  passed,  away,  and  another  has  sprung 
up  which  remember  not,  or  ignores,  their  predecessors 
in  the  centuries  which  have  gone.  As  we  have 
already  stated,  there  is  only  one  absolutely  private 
bank  in  the  House  to-day,  although  it  was  many 
years  after  the  establishment  of  joint-stock  institutions 
that  any  admission  was  allowed  to  them  to  the  sacred 


precincts  of  the  Clearing  House.  But  it  is  not  only 
the  private  houses  which  have  disappeared  off  the 
scene — amalgamation  between  joint-stock  banks  have 
constantly  taken  place.  It  will  be  seen  by  the  follow- 
ing list  that  in  1854  the  only  joint-stock  banks  then 
in  the  House  were  the  Commercial  Bank,  the  London 
Joint-Stock,  the  London  &  Westminster  (with  their 
Southwark  branch),  the  Eoyal  British  Bank,  and  the 
Union  Bank  of  London,  and  it  will  be  noticed  what 
fate  has  befallen  these   and  the   rest. 


Barclay  &   Co. 
Barnett   &   Co. 

Bosanquet   &   Co. 
Brown,   Janson,   &   Co. 
Commercial   Bank 
London   &   County  Bank 
Currie   &   Co 

Dimsdale   &   Co. 

Fuller  &   Co 

Olyn   &   Co 

...Amalgamated  with  Lloyds 

...Stopped  payment  in  1866 

...Amalgamated  with  Glyn 
&   Co.,   1864 

...Amalgamated  with   Pres- 
cott  &   Co.,  1890 

...Amalgamated  with  Parr's, 

...Amalgamated    with    Cur- 
rie  &   Co.,    1864 


Hanbury   &    Co. 

Hankey  &   Co. 

Hey  wood   &   Co. 

London   Joint- Stock  Bank 
Jones,   Loyd,    &   Co.  ... 

...Amalgamated    with    Bar- 
nett  &   Co.,   1864 

Became  Consolidated  Bank 

Amalgamated  with  Parr's, 

...Amalgamated  with  Lon- 
don &  Westminster, 

London   &  Westminster  Bank 

„  (Southwark) 

Lubbock   &   Co. 

Martin   &   Co. 
Masterman   &   Co. 

Prescott  &   Co. 

Price   &   Co.     ... 
Robarts   &   Co. 

Royal  British  Bank 
Rogers  &   Co.  ... 

v.\»  «  A 

or  TMC 


..Amalgamated     with     Ro- 
barts  &   Co.,   1860 

..Became  Agra  &  Master- 
man's  Bank,  1864. 
Stopped  payment, 

...Amalgamated  with  Dims- 
dale,   1890. 

...Stopped    payment,    1866. 

...Amalgamated  with  Lub- 
bock &   Co.,    1860. 

...Stopped    payment,   1866. 

...Became  English  Joint- 
Stock  Bank,  1866. 
Stopped  payment, 


Sapte  <fe  Co 

Smith  &  Go. 
Spooner  &   Co. 

Stevenson   &   Co 

Union  Bank  of  London 
Williams  &   Co 

Willis,   Percival,   &   Co. 

Since   1854  many  changes 
following    banks    have    been 
seen  at  a  glance    that    the 
tinned.     The  banks  admitted 
City  Bank,  1856         

Amalgamated    with    Ful- 
ler  &  Co.,   1869 

.Amalgamated    with    Bar- 
clay  &   Co.,   1866 

.Amalgamated  with  Bosan- 
quet   &   Co.,   1867 

Bank  of  London,   1866 
National  Bank,   1859 
Alliance  Bank,   1868... 

Imperial  Bank,   1868... 

.Amalgamated  with  Man- 
chest  &  Salford  Bank, 

.Stopped  payment,   1878 

have  taken  place.  The 
omitted,  but  it  will  be 
system  of  changes  con- 
since  1864  have  been  : — 

.Amalgamated  with  Lon- 
don and  Midland, 
1898,  and  title  of 
combined  institutions 
altered  to  London 
City  &  Midland  Bank 

.Stopped  payment,   1866 

.Amalgamated  with  Parr's, 


,  Amalgamated  with  Lon- 
don Joint-Stock  Bank, 


Metropolitan  Bank,  1868  ...Amalgamated  with  Birm- 
ingham Banking  Com- 
pany, 1889 

Bank  of    England,   1864      ...One  side  only 

National  Provincial  Bank,  1865 

London      &      South  -  Western 
Bank,  1878 

Central  Bank,  1878 Amalgamated  with  Birm- 
ingham and  Midland 
Bank,  1891,  when 
titled  was  changed  to 
London  &  Midland 
Bank.  Further  amal- 
gamation with  the 
City  Bank,  1898,  when 
name  again  altered  to 
London,  City  &  Mid- 
land Bank,  Ltd. 

Capital  &  Counties'  Bank,  1882 

Lloyds'  Bank,    1894 On    their    amalgamation 

with  Barnett  &  Bosan- 

Parr's  Bank,   1891     On    their    amalgamation 

with  Fuller  &  Co. 


Bank   of  England   (one  side  only). 

Barclay  &  Co.,   Ltd. 

Capital  &  Counties. 

Glyn   &   Co. 



London   &   County. 

London   &   South- Western. 

London   &   Westminster. 

London,   City,   &  Midland. 

London   Joint- Stock. 




National  Provincial. 

Parr's    &   the  Alliance. 

Bobarts,  Lubbock,   &   Co. 

Union   &  Smith's. 

Williams,   Deacons. 



Barclay  &  Company,  Limited. 

This  company,  when  it  appeared  as  a  limited  instead 
of  a  private  company,  almost  took  away  the  breath 
of  the  banking  world.  The  announcement  was  entirely 
mi- anticipated  ;  the  old  private  banking-house  of 
Barclay  &  Co.  was  looked  upon  as  one  of  the  few 
which  would  weather  the  tide  of  competition  and  pro- 
ceed on  its  own  lines,  strong  and  firm,  as  it  had 
done  for  more  than  a  century.  If  Barclay's  amalga- 
mated at  all  why  should  it  not  be  with  some  of  their 
contemporaries  in  the  west  of  London,  and  some  of 
their  many  connections  in  the  country?  That  was 
the  question  asked  by  the  customers,  and  the  man 
in  the  street.  The  business  was  sound,  old  estab- 
lished ;  the  credit  was  all  that  could  be  desired ;  the 
firm  was  one  of  those  in  which  no  one  expected  to 
see  any  alteration ;  the  demands  of  modern  times  as 
regards  periodical  balance-sheets  had  been  complied 
with ;     the   pubUc   were   more   than    satisfied   with  the 



stability  of  the  institution,  and  yet  the  directors  thought 
fit  to  arrange  a  combination  of  interests  which  staggered 
the  financial  world.  The  wisdom  of  the  policy  of  the 
Bank  was  seriously  questioned,  but  the  result  proved 
that  it  was   more   than  justified. 

Barclay's,  like  Robarts,  was  one  of  the  old  private 
banking  institutions  in  London  which  had  survived  the 
tide  of  amalgamation  and  absorption ;  the  bank  had 
held  sternly  aloof  from  all  inducements  and  allure- 
ments. There  were  scores  of  joint-stock  banks  which 
would  have  been  only  too  glad  to  come  to  terms, 
but  none  of  the  offers  were  accepted.  Barclay's 
wished  to  take  its  own  initiative,  and  did  so.  Joint- 
stock  banks,  as  partners,  were  not  desired — they  were 
not  needed.  Seeing  the  importance  of  falling  in  line, 
Barclay's  chalked  out  the  plan  on  which  they  intended 
to  work,  and  by  a  skilful  piece  of  diplomacy  obtained 
the  ready  consent  of  the  many  provincial  houses  to 
throw  in  their  lot  with  them  so  that  a  limited 
company  might  be  established  on  a  sound  basis,  the 
interest  of  each  branch  connected  with  the  partner- 
ship might  be  properly  considered,  and  that  the  com- 
bined institution  might  face  the  London  world  as 
a  joint-stock  company  which  was  prepared  to  measure 
Bwords  with  those  at  that  time  holding  the  supremacy. 


From  a  private  bank,  of  great  repute,  Barclay's,  by 
this  one  stroke  of  diplomacy,  placed  themselves  in  the 
foremost  ranks  of  the  clearing  banks  of  the  day — 
a  position  which  they  have  more  than  maintained 
since.  The  firm  of  Barclay  &  Co.,  not  to  give  their 
title  in  full,  was  so  well  known  that  their  pronounce- 
ment in  1896  was  received  with  the  greatest  respect, 
albeit  excitement ;  and  everyone  was  assured  that  no 
such  momentous  step  would  have  been  taken  except 
the  management  was  absolutely  clear  that  it  would 
be  for  the  present  and  future  good  of  the  institu- 
tion.    The   circular  ran  : — 

"54,    Lombard    Street, 

"  London,   E.G. 

''June,  1896. 
**  We  have  the  pleasure  to  inform  you  of 
the  completion  of  arrangements  for  the  amalga- 
mation of  the  businesses  of  the  private  banks, 
who  names  are  appended,  as  a  company  with 
the  name   of    Barclay   &   Company,   Limited. 

"The  registered  capital  will  be  £6,000,000, 
of  which  £5,000,000  will  be  issued  and  sub- 
scribed ;  £2,000,000  will  be  paid  up,  and 
a    further    sum    of    £1,000,000    provided    as    a 

reserve  fund.  The  whole  of  the  £5,000,000, 
and  also  the  reserve  fund,  will  be  subscribed 
by  the   amalgamating  firms. 

**The  directors,  whose  names  are  annexed, 
have  been  selected  from  among  the  existing 
partners,  and  the  local  management  will  remain 
in  the  same  hands  as  heretotore,  the  private 
character  of    the   banks   being   thus   preserved. 

*'  We  are  confident  that  this  combination  of 
private  banks,  which  has  been  long  in  con- 
templation, will  have  the  approval  of  our  friends 

and  of  all  concerned. 

"Barclay   &   Co." 

Names   of   Banks  Amalgamating. 

Barclay,    Bevan,    Tritton,    Eansom,    Bouverie    &     Co., 
London   and  Brighton. 

Goslings   &   Sharpe,   London. 

Gurney  &  Co.,  Norfolk,  Fakenham,  Halesworth,  King's 
Lynn,    Wisbech,   Great   Yarmouth. 

Gurney s,   Alexanders   &   Co.,   Ipswich. 

Gurneys,   Eound,   Green   &   Co.,   Colchester. 

J.   Backhouse   &   Co.,   Darlington. 

Bassett,   Son    &    Harris,   Bedfordshire   (Leighton    Buz- 
zard  Bank). 

Fordham,   Gibson   &   Co.,   Koyston. 


Gibson,   Tuke   &   Gibson   (Saffron    Walden   and    North 
Essex  Bank). 

Molineux,  Whitfeld  &   Co.   (Old  Bank),   Lewes. 

J.   Mortlock   &   Co.,   Limited,    Cambridge. 

Sharpies,   Tuke,   Lucas   &   Seebohm,   Hitchin. 

Sparrow,  Tufnell  &  Co.  (Essex  Bank),  Chelmsford  and 

Veasey,   Desborough,   Bevan,    Tillard  &   Co.    (Hunting- 
ton  Town   and   County   Bank). 

Woodall,   Hebden   &   Co.,    Scarborough   Old  Bank. 

The  following  interesting  history  of  the  premises 
now  occupied  by  the  Bank  is  taken  from  Mr.  J.  Hilton 
Price's  valuable  work,  "  The  Signs  of  Old  Lombard 

"No.  58.  'The  Black  Horse.'  This  was  the  original 
site  of  this  sign.  It  was  here  that  Pepys'  friend, 
little  Stokes,  the  goldsmith,  lived,  who  in  1677 
appeared  in  the  'Little  London  Directory'  as  *kepe- 
ing  running  cashes'  under  the  name  of  Humph.  Stocks; 
but  Stokes  was  probably  correct,  as  in  The  London 
Gazette  of  June,  1700,  the  name  of  Robert  Stokes, 
of  *  The  Black  Horse '  is  to  be  seen.  John  Bland, 
goldsmith,  was  here  in  1728,  having  obtained  a  lease 
from  the  Vintner's  Company.  In  1749  a  fresh  lease 
was    granted    to    a    Devereux    Bowly,    and    then,    or 

perhaps  a  little  earlier,  it  may  be  presumed  John 
Bland  moved  to  the  premises  now  No.  62,  at  the 
corner  of   Birchin  Lane,  and  took  his  sign   with  him. 

"No.  54.  By  a  deed  in  the  possession  of  the 
Vintner's  Company,  we  learn  that,  in  1728,  this 
house  was  called  *The  Bible,'  and  was  in  occupation 
of  George   Braithwaite,   a  goldsmith. 

"No.  55.  This  house  was  in  all  probability  called 
*  The  Three  Kings,'  and  was  occupied,  according  to 
a  list  of  bankers  published  in  1768  in  The  Daily 
Jounialy  by  Messrs.  Pewtress  &  Robarts,  and  by 
Messrs.  Smith,  Wright  &  Gray.  In  another  list  we 
find  Messrs.  Pewtress  &  Robarts  as  being  opposite 
*The  Three  Kings,'  which  would  be  about  No.  82,  but, 
unfortunately,  nothing  is  known  of  this  firm  after 
1769,  otherwise  we  should  have  been  able  to  clear 
up  the  difiBculty  by  the  number.  In  1770  we  find 
the  house  was  numbered  55,  and  Messrs.  Smith, 
Wright  &  Gray  were  the  occupiers,  where  they 
remained    a   few  years  before  moving  to  No.   21. 

"  No.  66,  on  the  east  side  of  George  Yard,  was 
*The  Black  Spread  Eagle.'  We  learn  from  Tht 
London  Gazette  that  in  1676  one  James  Taylor, 
a  goldsmith,  was  at  this  sign,  and  that  he  advertised 

for  a  runaway  lad,  aged  about  fourteen  years,  who 
was  somewhat  freckled  in  the  face,  and  had  brown 
hair  and  wore  a  grey  coat  which  had  pewter  buttons. 
That  is  all  that  is  known  of  him.  The  next  occupant 
of  '  The  Spread  Eagle '  was  Jeremiah  Marlow,  a  gold- 
smith, who  advertised  his  wares  in  The  London 
Gazette  from  1694  to  1702.  Messrs.  Freame  &  Gould 
were  here  in  1728.  Mr.  Freame  started  in  business 
in  1694  at  '  The  Three  Anchors '  in  this  street,  where 
he  certainly  remained  till  1702.  In  1786  Mr.  James 
Barclay,  who  was  the  son  of  David  Barclay,  of 
Cheapside,  joined  him  in  partnership.  Towards  the 
end  of  the  last  century  it  is  recorded  that  the  staff 
of  Barclay's  consisted  of  three  clerks,  and  we  are 
told  that  upon  the  third  clerk  coming  to  the  shop  for 
the  first  time,  he  was  thus  dressed:  He  wore  a  long 
flapped  coat  with  large  pockets;  the  sleeves  had  long 
cuffs  with  three  large  buttons,  something  like  the 
coats  worn  by  the  Greenwich  pensioners  of  the  present 
day  ;  an  embroidered  waistcoat  reaching  nearly  down 
to  his  knees,  with  an  enormous  bouquet  in  the  but- 
ton-hole, a  cocked  hat,  powdered  wig  with  pigtail  and 
bagwig,  and  gold-headed  cane  similar  to  those  of 
the  present  day  carried  by  footmen  of  ladies  of  rank. 


This  appears  a  peculiar  costume  nowadays,  but  it  is 
quite  possible  that  bankers  had  a  particular  dress  or 
uniform  that  they  compelled  their  clerks  to  wear. 
Messrs.  Barclay,  Tritton  &  Co.  remained  here  till 
1818,  when  their  number  became  64.  This  bank  now 
occupies  the  whole  block  between  George  Alley  and 
George  Yard,  consisting  of  61,  62,  58,  64,  65,  and  5Q. 
**  No.  67.  The  sign  of  the  house  formerly  on  this 
site  was  probably  '  The  Kam,'  although  in  the  deeds 
of  the  property  no  special  sign  is  named ;  but  from 
the  perusal  of  them  we  learn  that,  previous  to  the 
Great  Fire  in  1666,  *  The  George  Inn,'  stood  here, 
and  afterwards  two  houses  were  erected  on  each  side 
of  George  Yard,  the  two  on  the  west  side  of  the 
yard,  described  respectively  as  Snow's  House,  which 
we  know  was  No.  58,  and  Ward's  House,  which  was 
No.  67.  Upon  reference  to  the  *  Little  London  Direc- 
tory,' of  1677,  we  find  that  Eobert  Ward  and  John 
Towneley  were  at  *  The  Eam,'  keeping  running  cashes ; 
we  do  not  know  how  long  this  firm  existed,  but 
about  1750  we  find,  by  a  deed,  that  Mr.  Fraser 
Honeywood,  banker,  was  here,  whose  business  was 
started  about  1737,  probably  in  the  same  house,  by 
Atkins,   Honeywood  &  Fuller,    and   when    they   moved 


into  Birchin  Lane  in  1754,  Mr.  Henton  Brown, 
banker,  came  here ;  in  1781  the  firm  had  become 
Collinson  &  Tritton.  They  occupied  during — ihis 
period  the  two  houses,  57  and  68,  which  had  been 
made  into  one.  Mr.  Tritton  joined  the  firm  of 
Messrs.  Barclay  &  Bevan,  and  in  1787  Henry  Gold- 
finch  occupied  the  house." 

Oddly  enough,  no  accurate  account  has  yet  been 
given  to  the  public  of  the  nativity,  nearly  two  centuries 
ago,  of  this  great  bank.  The  tradition  concerning 
Mr.  Barclay,  the  draper  of  Cheapside,  and  King 
George,  is  but  a  fairy  tale  which  contains  only  a  few 
grains  of  truth.  When  the  grain  is  sifted  from  the 
chaff,  the  story  bears  quite  a  different  complexion. 
Truth,  however,  is  stranger  than  fiction,  and  my 
readers  will  find  it  in  this  case  quite  as  entertaining. 

The  date  of  its  establishment  is  very  uncertain,  but 
must  have  been  prior  to  1729,  as  the  books  of  the 
firm  go  back  to  that  date.  By  the  courtesy  of  one 
of  the  directors  we  have  had  access  to  the  oldest 
ledger  held  by  the  bank,  and  the  first  entry  is  under 
the  date  mentioned.  The  ledger,  however,  is  marked 
**  S,"  and  as  in  those  days  the  books  were  distin- 
guished by  letters  instead  of  numbers,  it  is  clear  that 


many  previous  ledgers  had  been  in  use,  so  that,  in 
all  probability,  another  forty  or  fifty  years  may  be 
added  to  the  age  of  the  bank.  While  speaking  of 
this  ledger  it  will  be  of  interest  to  learn  that  one  of 
the  securities  in  which  the  surplus  funds  of  the  bank 
were  then  invested  was  "the  Lead  Company's"  shares, 
which  are  still  held  by  some  of  the  partners,  and 
continue  to  yield  a  profitable  revenue.  There  is 
a  record  that  in  1728  one  of  the  then  partners, 
Joseph  Freame,  had  purchased  the  freehold  premises 
in  Lombard  Street,  at  the  corner  of  George  Yard. 
In  that  year,  Joseph  Freame,  described  as  *'  citizen 
and  goldsmith,"  traded  in  partnership  with  Thomas 
Gould,  and  continued  to  do  so  under  the  style  of 
Gould  &  Freame,  until  1736,  when  James  Barclay 
entered  the  firm,  and  it  is  at  this  stage  in  the 
history  of  the  bank  that  the  name  of  Barclay  first 
appears,  that  James  being  the  son  of  David,  and 
grandson  of  Kobert  Barclay  the  Apologist.  According 
to  a  genealogical  tree  of  the  Barclays  of  Urie  (dated 
1812)  which  gives  the  history  of  the  Barclays  for 
nearly  800  years,  it  appears  that  the  main  branch 
of  the  Scotch  family  intermarried  with  the  direct 
descendants  of  Edward  III.  of  England  and  Eobert  III. 


of  Scotland,  and  it  may  be  interesting  to  note  that 
the  Barclays  of  Barclay,  Perkins  &  Co.  are  also 
connected  with  the  same  family.  Thus  it  will  be 
gathered  that  the  tale  of  the  intrcduction  of  James 
Barclay  to  the  firm  by  the  influence  of  George  III. 
is  simply  a  myth.  One  thing  is  quite  clear,  that  so 
far  back  as  the  early  part  of  the  seventeenth  century 
the  Barclays  were  in  frequent  touch  with  royalty,  but 
space  will  not  permit  us  to  give  the  many  interest- 
ing and  fascinating  records  to  be  found  amongst  the 
writings  of  old  chroniclers. 

The  Be  vans  appear  to  have  been  connected  with 
this  firm  as  far  back  as  1728.  At  all  events,  at 
that  date  Silvanus  Bevan  figures  among  the  clients  of 
the  firm.  The  Bevan  family  is  of  Welsh  extraction, 
and  can  trace  its  pedigree  farther  back  even  than 
that  of  the  Barclays.  The  Mr.  Silvanus  Bevan 
referred  to,  if  not  an  actual  partner  in  the  firm, 
was  probably  an  ancestor  of  the  first  Mr.  Bevan 
who  entered  the  Lombard  Street  house,  whose  descen- 
dant, Mr.  Francis  Augustus  Bevan,  is  now  the  chair- 
man of  the  Bank.  This  gentleman  was  educated  at 
Harrow,  under  the  late  Dr.  Vaughan,  and  entered  the 
firm  of  Barclay,  Bovan,  Tritton  &  Co.,  as  it  was 
then   called,   on   February   22nd,   1859.     . 


It  was  in  1786  that  Mr.  Jolm  Henton  Tritton 
became  a  partner  in  the  firm,  and  since  that  date 
various  members  of  his  family  have  held  that  respon- 
sible position.  The  present  Mr.  Joseph  Herbert  Tritton 
is  the  great-great  grandson  of  John  Hinton,  and  is 
one  of  the  best  known  authorities  in  the  banking 
world.  Holding  the  high  position  of  honorary  secre- 
tary of  the  Bankers'  Clearing  House,  the  institution 
which  is  the  pulse  of  the  financial  world,  he  is  also 
one  of  the  leading  officials  of  the  Institute  of  Bankers, 
the  Bankers'  Association,  the  Association  of  Country 
Bankers,   the   Bank   Clerks'   Orphanage,   &c.,    &c. 

In  this  volume  we  have  not  space  at  our  disposal 
to  go  at  all  adequately  into  the  history  of  the 
members  now  constituting  the  board  of  management, 
nor  can  we  deal  with  the  remarkable  life-story  of 
many  of  the  century  old  banks  absorbed.  If  we  were 
to  do  so  we  could  fill  volume  after  volume.  So  we 
will  deal  very  briefly  with  two  only  of  the  amalga- 
mated banks — Eansom,  Bouverie  &  Co.  and  Goslings, 
Sharpe   &   Co. 

Kansom,   Bouverie,    &   Co. 
On  the  absorption  by  Barclays  of  this  old  west-end 
house  the  title    of   the  establishment    was    altered  to 

Barclay,  Bevan,  Tritton,  Eansom,  Bouverie  &  Co. 
The  house  of  Eansom  &  Co.  dates  back  to  1746,  when 
it  was  called  Eansom,  Morland  &  Hammersley.  It  is 
a  curious  fact  that  each  of  the  partners  subsequently 
opened  separate  banking  establishments.  Mr.  Hammers- 
ley,  in  1796,  opened  a  house  in  Pall  Mall,  and 
Mr.  Morland,  twenty-three  years  later,  started  a  bank 
of  his  own.  In  1834  Messrs.  Eansom  &  Co,  removed 
to  1  Pall  Mall  East,  where  they  remained.  In  1856 
an  amalgamation  was  effected  with  Messrs.  Bouverie, 
Murdock,  Bouverie  &  James,  of  11  Haymarket,  when 
the  name   was   changed   to   Eansom,   Bouverie   &   Co. 

With  regard  to  Mr.  Hammersley's  bank,  various 
partners  were  admitted  from  time  to  time,  the  firm 
in  1823,  being  Hammersley,  Greenwood  &  Brookshank. 
They  continued  to  conduct  business  as  bankers  till 
1840,  when  they  were  absorbed  by  Messrs.  Coutts  &  Co. 
The  premises  which  they  occupied  in  Pall  Mall  were 
subsequently  taken  by  the  London  Joint- Stock  Bank, 
a  branch  of  which  was  established  there  in  1842. 
It  was  in  1888,  June  23rd,  that  the  announcement 
of  the  amalgamation  of  this  old  bank  with  that  of 
Barclay,  Bevan,  Tritton  &  Co.  first  appeared,  and, 
it  is  needless  to  say,  caused  quite  a  flutter  of  surprise 
amidst   the   banking  fraternity. 


Goslings  &  Sharpes, 
or  "  The  Three  Squirrels,"  to  give  it  its  title  of  the 
days  of  long  ago,  was  absorbed  by  Barclays  in  1896, 
and  most  Londoners  were  sorry  to  see  that  one  of 
the  old  historic  institutions  of  the  metropolis  had 
sunk  its  identity  by  amalgamating,  even  with  one  of 
the  strongest  and  most  progressive  banks  in  the 
country.  The  old  house  was  next  door  to  "The 
Palace  of  Henry  VIII.  and  Cardinal  Wolsey."  Even 
to-day  we  can  see  on  the  new  building  which 
Barclays  have  erected  on  the  site  of  Goslings  the 
"  three  squirrels."  It  would  have  been  a  thousand 
pities  for  this  sign  to  have  been  removed,  as  Goslings 
were  goldsmiths  and  bankers  upwards  of  two  centuries 
ago.  So  far  back  as  1650  one,  Henry  Pinckney,  was 
carrying  on  the  business  of  goldsmith  at  this  house. 
It  was  about  1650  that  the  goldsmiths  of  Lombard 
Street  and  the  Cheap,  began  to  migrate  towards 
Fleet  Street  and  the  Strand,  and  it  is  not  unlikely 
that  Pinckney 's  was  the  original  business.  The  house 
was  destroyed  in  the  Great  Fire,  and,  to  encourage 
the  landlord  to  re-build,  Thomas  Thorold  included 
the  ground  previously  occupied  by  the  adjoining  house, 
"The    Holy    Lambe."      The  present   building   includes 


the  sites  of  '*  The  Golden  Dragon,"  "  The  Crown," 
*'The  Wheatsheaf,"  "The  Three  Daggers,"  and  ''The 
Gun  in  Hand  Alley"  (otherwise  "Hercules  Pillars' 
Alley  "). 

Mr.  Hilton  Price  speaks  of  a  draft  drawn  on 
Sir  Francis  Child  by  the  Earl  of  Gainsborough, 
dated  "Ye  12th  of  May,  1705,"  which  runs  as 
follows  :  "  Sir, — I  desire  you  to  pay  unto  Mr.  Pinck- 
ney,  goldsmith,  three  days  after  sight  of  this,  the 
somme  of  forty-one  pounds  fourteen  shillings."  This 
shows  that  "The  Three  Squirrels"  and  "Ye  Mari- 
gold"  had  business  relationship. 

Noble  remarks :  "It  must  have  been  about  this 
period  (1674)  that  the  name  of  Gosling  first  became 
associated  with  the  firm,  for  among  several  pay- 
ments in  the  Secret  Service  Money  of  Charles  II.  and 
James  II.  occurs  this  entry :  '  To  Richard  Bokenham 
in  full  for  several  parcels  of  gold  and  silver  lace 
bought  of  William  Gosling  and  partners  on  May  2, 
1674,  by  the  Duchess  of  Cleaveland  for  the  wedding 
cloaths  of  the  Lady  Sussex  and  Lichfield,  £646  8s,  6d.'" 

We  may  enumerate  here  a  few  of  the  customers  of 
the  bank  whose  names  are  of  historical  interest.  Lord 
Campbell,   Lord  Denman  and  Lord  EUenborough  kept 


their  accounts  here,  as  did  also  Lord  Clive  and 
Warren  Hastings.  Amongst  literary  celebrities  are  to 
be  found  Law,  Bishop  of  Carlisle;  Percy,  Bishop  of 
Dromore ;  Alexander  Pope  and  Samuel  Richardson. 
Of  newspapers,  The  Times  and  The  Morning  Advertiser 
were  old  customers.  Such  is  a  brief  history  of  an 
establishment   with   a  remarkable   history. 

Subsequently  Barclay  &  Co.  have  absorbed  among 
others  the  private  firm  of  Marten,  Part  &  Co.,  of 
St.  Albans,  in  1892,  and  a  few  months  later  in  the 
same  year  the  company  were  sufficiently  fortunate  to 
procure  the  splendid  and  extensive  business  of  the 
York  Union  Bank.  Several  other  banks  have  since 
been  added  to  the  long  hst  of  those  which  Barclay's 
have  taken  over. 

Below  is  a  copy  of  the  balance-sheet  for  the  year 
ended  December   31st,    1904 : — 

Liabilities.  £          s.   d. 

lb  Current,  Deposit  and  other  Accounts      ...  36,392,416  14  11 

,,  Acceptances  for  Customers 141,884    1    4 

„  Capital,  viz. : — 

346,500  shares  of  £20  each,  £8  paid    ...  2,796,608    0    0 

„  Reserve  Fund 1,250,000    0    0 

£40,580,908  16    3 

By  Cash  in  hand  and  at 
Bank  of  England 
and  with  other 
Bankers     £5,023,183    2  11 

„  Cash    at    Call  and  at 

Short  Notice         ...        4,022,500    0     0 


Assets.  £  s.   d. 

9,045,683    2  11 

„  Investments 8,649,314  12  10 

,,  Advances    to    Customers   and  Bills    Dis- 
counted, including  Brokers' Bills       ...  21,395,081     5  1 
,,  Liability  of  Customers  for  Acceptances  (as 

contra)        141,884    1  4 

,,  Balance  of  Bank  Purchase  Account        ...  100,000     0  0 

,,  Bank  Premises  and  adjoining  Property  ...  1,248,945  14  1 

£40,580,908  16    3 



The   Capital   &   Counties'   Bank. 

This  bank  was,  established  more  than  seventy  years 
ago,  although  not  under  its  present  name.  It  was  on 
May-day,  1834,  that  the  Hampshire  Banking  Company 
first  saw  the  light  of  day  with  its  head  office  in 
Southampton,  but  the  lines  on  which  it  was  started 
were  sufficient  guarantee  that  there  was  a  long  life 
before  it.  The  original  capital  was  £300,000,  divided 
into  6,000  shares  of  £50  each.  At  an  extraordinary 
meeting  of  the  shareholders  held  on  30th  October, 
1839,  it  was  decided  (1)  to  increase  the  capital  by 
the  creation  of  a  further  2,000  shares ;  and  (2)  to 
authorise  the  board  to  pay  half-yearly  instead  of 
yearly  dividends.  These  shares  were  issued  at  a  pre- 
mium of  £3  each.  In  1848  a  call  of  £5  per  share 
was  made ;  and  nine  years  later,  the  directors  pro- 
posed that  £20,000  should  be  taken  from  the  reserve 
or  guarantee  fund  and  capitalised,  by  the  issue  to 
the  then  shareholders,  pro  rata,  of  2,000  new  shares 
at   a   premium   of  £2   per   share.     This   wise   move   on 


the  part  of  the  directors  immediately  enhanced  the 
repute  which  the  bank  already  enjoyed,  and,  as 
a  matter  of  course,  made  it  still  more  popular,  while 
business  rapidly  increased.  In  1864  new  capital  being 
issued  at  a  premium  of  £4  per  share,  raised  the 
total  paid  up  to  £150,000,  while  the  premiums  being 
added  to  the  reserve  increased  that  fund  to  £50,000. 
In  December,  1875,  the  paid-up  capital  stood  at 
£200,000.  Two  years  later  an  important  step  was 
taken,  the  title  of  the  institution  being  altered  to  the 
Hampshire  &  North  Wilts  Bank,  when  a  further  new 
issue  increased  the  capital  to  £300,000.  From  time  to 
time  this  item  has  been  increased  through  new  issues 
necessitated  by  the  acquisition  of  other  businesses,  or 
by  the  demands  made  by  the  steady  growth  of  the 
legitimate  business  of  the  bank  till  at  the  present 
time  it  amounts  to  no  less  than  £1,500,000,  while 
the   total   subscribed   is   £7,500,000. 

While  the  capital  has  been  frequently  augmented 
the  reserve  fund  has  been  well  cared  for,  receiving 
not  only  the  benefit  of  premiums  on  new  issues 
from  time  to  time,  but  also  substantial  subsidies  out 
of  the  annual  profits,  so  that  now  this  item,  which 
is  of  such  special  interest  to  the  shareholders  of  any 
bank,    approaches   a  million   pounds   sterling. 


Ths  head  office  remained  at  Southampton  till  1876, 
when  it  was    removed  to  London,   and,  in   1878,   the 
title   was  changed   to   the  Capital  and  Counties'  Bank, 
and  the  company  was  registered    as  a  limited  concern 
two    years    later.      But    though    the    bank    has    made 
steady   headway  there   have  been  times   when,  like   its 
competitors,   it   has   keenly   felt  the   strain   of  competi- 
tion.     After    having    entered    the    metropolis    the   one 
great   desire  of  the  directors   was  to  obtain  a  seat  in 
the  Clearing  House,  but  space  there,  then  as  now,  was 
very  limited,   and  other   competitors  were  in   the  field. 
In  the  report  for  the  year  ended  30th  June,  1877,  the 
following  paragraph  occurs :     **  Shortly  after  commenc- 
ing  business    in    London    the   directors    applied   to   be 
admitted   into   the  CleariDg  House,  but  the  committee, 
which   consists   of    London   bankers,   decline   to   accede 
to  the  application.     This  decision  has  caused  consider- 
able inconvenience  to  bankers  generally,  and  admittedly 
to   the   London  bankers   themselves,   as   it  has  thrown 
out   of    the   Cleariug   House    the    transactions    of   fifty 
branch  offices  which  have  hitherto  passed  through  that 
channel,   and    has    also    added    to    the    risk    attendant 
upon    the    collection,   on    both    sides,   of    cheques    and 
other     cash     documents     payable     in      London.       The 


directors  have  taken  steps  to  mitigate,  so  far  as 
possible,  the  inconvenience  to  their  country  corres- 
pondents, and  they  hope  the  time  is  not  far  distant 
when  the  London  bankers,  who  at  present  have  the 
exclusive  privilege  of  entry  to  the  Clearing  House, 
will  take  a  broad  view  of  the  situation,  and  extend 
the  advantages  of  clearing  to  all  bankers  having  City 
offices."  This  wish  is  even  now  strongly  endorsed 
and  re-echoed  by  bankers  generally,  but  it  will  be 
a  long  day  before  such  a  desirable  result  can  be 
arrived  at.  There  are  in  the  city  many  large  banks 
still  debarred  the  advantage  of  having  a  seat  in 
Post  Office  Court,  and  though  the  Clearing  House 
authorities  have  exerted  all  their  powers  and  exer- 
cised all  their  ingenuity  in  enlarging  and  increasing 
the  accommodation  of  the  building  there  must  be 
a  limit,  and  hemmed  in  as  the  House  is  by  other 
buildings  it  seems  to  us  that  for  many  a  year  to 
come  no  more  banks  can  be  admitted  except  by — 
let  us  hope  a  highly  improbable  contingency — one  or 
other  of  those  now  occupying  seats  retiring.  The 
only  other  course  by  which  increased  accommodation 
could  be  procured  would  be  by  the  purchase  of 
a  larger   site   and   the  consequent  erection   of   a   much 


larger  buildmg— an   end   to   be   most  devoutly  desired 
by   all  London   bank   officials. 

The  first  balance-sheet  of  the  Hampshire  Banking 
Company,  issued  to  the  public  in  1857,  was  as 
follows  : — 

Dr.  £        s.    d. 

To  Paid-up    Capital,    being   £10   per    share   on 

8,000  Shares        • 80,000    0    0 

„    Guarantee    Fund 20,990    1    4 

„  Amount  due  to  Customers  on  Deposit  and 
Current  Accounts,  and  upon  Drafts  in 
Circulation  531,392    8  10 

„    Profit  24,249  19    9 

£656,632    4  11 

Cr.  £        8.    d. 

By  Cash  at  Call,  Bills  Discounted,  Loans,  and 

other  Securities 649,632    4  11 

„    Cost  of  Bank   Premises  7,000    0    0 

£656,632    4  11 

Here  we  must  call  attention  to  the  slow  progress 
the  bank  had  made  up  to  that  date,  when  it  had 
been  established  about  twenty-three  years.  This  does 
not  sound  very  promising,  but  it  must  be  remem- 
bered that  when  the  bank  was  first  established, 
Southampton,  which  was  selected  for  the  head- 
quarters,    had     a    population    of    some     85,000    only. 


Compare  that  with  the  population  to-day,  and  at 
the  same  time  compare  the  balance  of  current  and 
deposit  accounts,  £631,000,  in  1857  with  the 
£28,251,167  of  forty-seven  years  afterwards — the 
amount  of  money  entrusted  to  the  custody  of  the 
bank  on  current  and  deposit  accounts  at  the  date  of 
the  last  annual  balance-sheet. 

By  glancing  at  the  old  balance-sheets  a  continuous 
growth  of  the  current  and  deposit  accounts  can  be 
noticed,  but  the  enormous  increase  in  the  figures  is 
due  to  a  considerable  extent  to  the  absorption  of 
other  banking  institutions — and  such  amalgamations 
or  absorptions  have  always  been  most  judicious,  and 
turned  out  very  successful.  In  1840  an  amalgama- 
tion was  effected  with  the  Southern  District  Banking 
Company,  an  opening  which  was  exceedingly  advan- 
tageous to  the  bank,  as  it  provided  several  establish- 
ments in  the  Isle  of  Wight.  In  1854  the  private 
firm  of  Wickham,  Baily  &  Rawlins,  of  Winchester, 
was  absorbed;  and,  in  1861,  the  private  bank  of 
Atkins  &  Son,  of  Portsmouth,  was  purchased.  But 
these  were  only  the  commencement  of  a  policy  to  be 
developed  later.  In  1863  the  old  established  house  of 
Seymour  &  Co.,  of  Basingstoke  and  Odiham,  was 
secured,  and  in  1878  +.he  Hampshire  Banking  Company 


bought    up    the    English    &    Jersey    Union    Bank    of 

In  1876  the  bank  took  a  most  important  step  in 
advance — the  head  office  was  removed  to  London,  and 
bankers  in  the  metropolis  rightly  assumed  that  this 
was  simply  the  prelude  to  further  and  greater  develop- 
ments. They  had  not  to  wait  long,  as  the  next 
year  it  was  announced  that  the  North  Wilts  Banking 
Company,  with  numerous  branches  and  sub-branches, 
had  been  secured.  Then  it  was  that  the  title  of 
the  institution  was  altered  to  the  Hampshire  &  North 
"Wilts  Bank,  Limited,  an  unwieldy  name,  which  was 
soon  after  changed  to  the  Capital  &  Counties'  Bank, 
Limited.  In  1878,  the  old  private  house  of  Willis, 
Percival  &  Co.,  of  Lombard  Street,  having  suspended 
payment,  the  Capital  &  Counties  came  on  the  scene, 
took  the  premises,  bought  the  business,  naturally 
assuming  that  this  step  would  secure  a  seat  in 
the  House.  This  event  did  not  come  oif,  however, 
and  the  enterprising  bank  had  to  wait  until  the 
Central  and  the  London  &  South- Western  had  pre- 
ceded it  before  the  chance  came  for  crossing  the 
sacred  threshold  of  the  Temple  of  Mammon.  In  1888 
two  private  banks  were  purchased — Haydon  &  Co.,  of 
Guildford;     and  Locke,   Tugwell   &   Meek,   of  Devizes. 


We  have  already  commented  on  the  importance  of 
the  absorption  of  the  North  Wilts  Banking  Company, 
a  still  more  far-reaching  amalgamation  was  effected 
in  1886,  when  the  Capital  &  Counties  procured  the 
Gloucestershire  Banking  Company,  Limited,  with  no 
less  than  forty-two  offices  in  the  west  of  England. 
Still  with  an  eagle  eye  on  eligible  openings  for  new 
or  extended  business,  the  firm  of  Knight  &  Son,  of 
Farnham,  was  bought  in  1886.  Four  years  passed  in 
a  state  of  quiescence  so  far  as  further  extensions  by 
absorptions  were  concerned,  but  lost  time  was  then 
rapidly  made  up.  In  1890  the  Western  Counties' 
Bank  was  taken  over,  to  be  followed  a  little  later 
by  the  absorption  of  the  Northamptonshire  Banking 
Company,  which  latter  gave  the  Capital  an  open- 
ing in  a  comparatively  new  direction.  In  1891  the 
two  banks  of  Garfit,  Claypon  &  Co.,  Limited,  of 
Boston,  &c.,  and  Watts,  Whidborne  &  Co.,  of  Teign- 
mouth,  &c.,  were  procured.  In  1893  the  old  established 
houses  of  Mellersh  &  Co.,  of  Godalming,  and  of 
Wells,  Hogge  &  Lindsell,  of  Baldock  and  elsewhere, 
were  procured.  These  are  by  no  means  all  the  kindred 
institutions  taken  over,  for,  in  1901,  the  well-known 
and   greatly    respected  firm  of   Lacon,   Youell   &    Co,. 


of  Yarmouth  and  elsewhere,  was  purchased,  as  was 
also  the  splendid  business  of  Moore  &  Eobinson's 
Nottinghamshire  Banking  Company.  The  following 
year  the  sound  little  "Cornish  Bank"  was  procured, 
and  later  the  two  coveted  houses  of  Hammond, 
Plumptre,  Hilton  <k  Co.  (of  Canterbury),  and 
Foster  &   Co.    (of   Cambridge,   &c.). 

It  must,  however,  be  borne  in  mind,  that  while 
the  bank  was  thus  rapidly  extending  its  sphere  of 
influence  by  judicious  amalgamations  and  absorptions, 
it  was  at  the  same  time  rapidly  catering  for  the 
needs  of  its  customers  by  opening  branches  and  offices 
in  all  directions.  Although,  of  necessity  the  figures 
which  appear  in  the  published  balance-sheet  have  natur- 
ally been  greatly  augmented  by  these  many  combina- 
tions of  interests,  it  must  at  the  same  time  not  be 
forgotten  that  no  little  of  the  remarkable  increase 
in  the  liabilities  to  the  public  on  current  and  deposit 
accounts,  and  the  bank's  position  to  meet  that  liability 
is  caused  by  the  steady  and  continuous  increase  of 
a  business,   solidly   founded,    and   well   conducted. 

The  bank  issues  a  balance-sheet  annually,  that  for 
the  80th  June  last  being  as  follows,  the  figures  will 
speak  for  themselves  : — 

Of  tKf 


^  OF 

Liabilities.  £  s.    d. 

To  Capital,  viz  : — 

150,000  Shares  of  £50  each,  £10  paid...  1,500,000    0    0 

„  Reserve  Fund 900,000    0    0 

,,  Amount  due  on  Current,  Deposit  and  other 

Accounts 28,251,167  14    9 

„  Acceptances  covered  by  Cash  or  Securities  457,625    6    2 

„  Endorsements  on  Foreign  Bills  negotiated  16,439    2    2 

Net  Profits  £322,604    4    8 

Jan.  Divi- 
dend...    £118,000    0    0 

on  New 
Shares  3,466  13    4 

July  Divi- 
dend...      120,600    0    0 

on  the 
cost  of 
Premises     20,000    0    0 

tion ...         10,000    0    0 

272,866  13    4 

49,737  11    4 

£31,174,969  14    5 

Assets.  £  8.    d. 

By  Cash  at  Head  Office,  Branches,  and  Bank 

of  England  4,558,908    9    5 

„  Money  at  CaU  and  Short  Notice 3,057,472  12    9 

„  Investments 5,278,230  19  10 

,,  Bills  Discounted,  Loans  and  other  Accounts        16,933,421  16    9 

,,  Liability  of  Customers  for  Acceptances  as 

per  Contra 457,625     6     2 

,,  Liability  of  Customers  for  Endorsements 

as  per  Contra        16,439    2     2 

,,  Banking  Premises  in  London  and  Country  872,871    7    4 

£31,174,969  14    5 



Messrs.   Glyn,   Mills,   Currie   &   Co. 

This  is  one  of  the  largest  banks  in  London,  the 
amount  and  volume  of  its  business  being  enormous. 
Probably  a  larger  volume  of  business  is  transacted 
at  67  Lombard  Street  than  at  any  other  single  insti- 
tution  in   the   country. 

A  very  fair  criterion  as  to  the  extent  of  the  busi- 
ness of  any  of  the  banks  which  are  members  of  the 
Bankers'  Clearing  House  is  the  staff  which  it  is 
necessary  to  keep  at  the  House  itself  in  order  to 
carry  through  the  daily  transactions.  There  are  not 
many  of  the  London  clearing  banks  employing  a  larger 
staff  than   Glyn's. 

This  firm  sprung  into  existence  about  1754 — the 
exact  dafce  is  uncertain — under  the  name  of  Vere, 
Glyn,  HalUfax  &  Co.  In  1770  the  firm  consisted 
of  Sir  Kichard  Glyn,  Knt.  and  Bart.,  and  Thomas 
Halhfax,  and  carried  on  business  at  18  Birchin  Lane. 
In  1789  business  was  conducted  at  12  Birchin  Lane, 
from  which    address  in   1826    the    bank   was   removed 


to  67  Lombard  Street,  the  premises  which  have  ever 
since   been   occupied   by   the  firm. 

The  foUowmg  remarks  by  Mr.  Hardcastle,  written 
in  1842,  anent  this  bank  will  be  of  interest:  '^Glyn's, 
in  Lombard  Street,  is  a  complete  contrast  to  that  of 
Coutts.  Here,  in  addition  to  a  large  portion  of  the 
accounts  of  the  nobility  and  landed  gentry,  is  the 
greatest  number  of  commercial  accounts  in  London, 
and  here  scenes  of  bustle  and  animation  take  place 
daily,  of  which  it  is  not  easy  to  convey  an  adequate 
idea.  About  three  o'clock  all  is  life,  activity,  and 
vigour ;  the*  place  is  a  fair,  and  more  like  a  great 
'change  than  the  Royal  Exchange  itself  used  to  be. 
Though  the  bank  is  spacious,  and  the  counters  are 
packed  with  clerks  as  close  as  they  can  stand  together, 
you  may  sometimes  have  to  wait  for  twenty  minutes 
before  your  turn  to  be  served  arrives.  Such  is  the 
rush  of  business  at  Glyn's.  Two  mighty  streams  of 
money  are  constantly  ebbing  and  flowing  across  the 
counters,  and  £500,000  is  said  to  be  no  uncommon 
sum  for  the  firm  to  settle  at  the  Clearing  House  of 
an  afternoon.  In  this  respect  Glyn's  bank,  more  than 
any  other,  is  characteristic  of  the  age.  The  rapid  pro- 
gress of   modern  discoveries,  the  exploring  genius,  the 


accumulated  strength  and  ponderous  force  of  the  in- 
ventions and  improvements  of  the  nineteenth  century, 
are  all  represented  in  this  one  bank,  and  not  by  any 
means  to  an  equal  extent  in  any  other.  The  talent 
by  which  this  great  concentration  of  interests  has 
been  effected  is  of  the  highest  order.  It  combines 
intelligence  of  the  most  vivid  character  and  judge- 
ment of  the  keenest  power.  It  draws  even  more 
largely  upon  mental  than  upon  pecuniary  resources, 
great  as  the  latter  unquestionably  are,  and  is  equally 
felicitous   and   original. 

**  Old  Mr.  Lefevre,  one  of  the  principal  founders 
of  Curries  &  Co.'s  bank  on  Cornhill,  and  the  father 
of  the  then  Speaker  of  the  House  of  Commons, 
illustrated  his  theory  of  banking  one  day  in  a  signi- 
ficant manner.  The  customer  in  question  was  one 
of  those  men  who  find  it  very  convenient  to  have 
bad  memories.  His  account  was  almost  always  over- 
drawn, and  whenever  spoken  to  upon  the  subject  his 
answer  was  the  same,  '  He  really  had  forgotten  how 
it  stood.'  At  last  Mr.  Lefevre,  who  had  watched 
his  opportunity,  caught  him  one  day  at  the  counter 
and  said  to  him,  '  Mr.  ,  you  and  I  must  under- 
stand  one    another    something    better    than    we    seem 


to  do.  I  am  afraid  you  don't  know  what  banking 
is;  give  me  leave  to  tell  you.  It's  my  business  to 
take  care  of  your  money ;  but  I  find  you  are  always 
taking    care    of    mine.      Now    that    is    not    banking 

Mr.    ,    it    must    be    the    other    way.       I'm     the 

banker,  not  you;    you  understand  me  now,  Mr.  , 

I'm  sure  you  do.'  Mr.  Lefevre,  though  a  very  silent 
and  reserved  character,  was  not  without  his  vein  of 
sly  humour.  One  day  he  happened  to  have  at 
dinner  a  great  talker — one  of  those  monstrous  bores 
who  will  speak  without  ever  saying  anything  worth 
listening  to ;  who  seem  to  think  it  an  essential  con- 
dition of  existence  that  a  man  should  never  cease 
to  hear  the  sound  of  his  own  voice,  and  who  continue 
talking  incessantly  as  if  the  hidden  principle  of  per- 
petual motion  lay  in  the  tongue.  After  enduring  this 
volume  of  sound — signifying  nothing — for  some  time 
with  exemplary  patience,  Mr.  Lefevre,  to  the  aston- 
ishment of  the  company,  very  quietly  suppressed  the 
nuisance  by  taking  advantage  of  a  short  pause  in  his 
monopolylogue,  and   simply   observing,   'You  need   not 

talk   any   more   Mr.   ,   if  you   don't   like  it.* " 

In    1851    the   bank  was    Glyn,   Mills   &   Co.,   which 
name    it -retained    till    1864,   when    an    amalgamation 


was  effected  with  the  old  house  of  Curries  &  Co.,  of 
Cornhill,  frora  which  date  the  name  has  been  Glyn, 
Mills,    Currie   &   Co. 

The  firm  of  Curries  &  Co.,  started  in  1773  after 
the  failure  of  Neale,  James,  Fordyce  &  Co.,  at 
89  Cornhill,  under  the  name  of  Mason,  Currie, 
James  &  Yallowly.  Yallowly  was  formerly  a  clerk 
in  the  employ  of  Neale,  James,  Fordyce  &  Co.,  and 
James,  who  appears  as  a  partner  in  the  one  firm, 
was  probably  identical  with  the  James  of  the  ether. 
Various  changes  took  place  in  the  firm,  till  in  1814 
it  was  known  as  Curries,  Eaikes  &  Co.  In  1827  the 
title  was  changed  to  Currie  &  Co.,  and  fifteen  years 
later  an  amalgamation  took  place  between  this  house 
and  that  of  Dorrien  &  Co.,  of  Finch  Lane.  In  1864, 
as  already  stated,  Curries  &  Co.  and  Glyn,  Mills  &  Co. 
amalgamated.  The  firm  of  Dorriens  &  Co.  was  estab- 
lished in  Finch  Lane  so  far  back  as  1770  under  the 
name  of  Dorriens,   Euckers   &   Carleton. 

It  has  already  been  mentioned  that  Curries  &  Co. 
started  business  after  the  failure  of  Neale,  James, 
Fordyce  &  Co.  Of  this  latter  firm  Fordyce,  its 
head,  was  originally  only  a  clerk.  He — at  one  time 
an   Aberdeen   hosier — when   employed   by   the    banking 


house,  showed  so  much  aptitude  and  abihty  that  he 
was  soon  elected  as  a  partner,  the  house  then  being 
known  as  Koffrey,  Neale  &  James,  but  the  spirit  of 
speculation  took  possession  of  him,  and  meeting  with 
success  he  soon  made  use  of  his  partners'  funds  as 
well  as  his  own.  Success  attended  all  his  efforts, 
he  on  one  occasion  making  £100,000  by  a  single 
stroke.  He  bought  an  estate,  married  a  lady  of 
title,  and  contributed  liberally  to  all  sorts  of  charit- 
able institutions.  His  partners  were  proud  of  the 
ability   of  their   colleague. 

But,  as  is  usual,  success  of  that  kind  cannot  con- 
tinue for  ever,  and  sooner  or  later  a  check  comes. 
Fordyce  proved  no  exception  to  this  rule.  A  specu- 
lation into  which  he  had  entered  turned  out  disas- 
trously, and  he  lost  £100,000  over  it.  Other  losses 
followed,  and  the  guardian  spirit,  which  hitherto  had 
assisted  him,  apparently  completely  changed  its  tactics, 
and  lured  him  to  his  ruin.  Failure  after  failure — 
and  heavy  ones,  too — compelled  him  to  draw  more 
and  more  on  the  resources  of  the  firm.  His  co- 
partners became  frightened  and  expostulated,  but  all 
to  no  purpose.  His  plans  were  keen  and  well  laid 
as    ever,  but    circumstances   appeared   leagued   against 


him.  In  spite  of  the  continued  run  of  ill-luck  he  kept 
cool,  calm,  collected,  dignified,  as  in  his  palmiest  days. 
But  it  was  impossible  that  he  could  long  sustain 
the  enormous  strain  upon  him,  and  one  day  he  was 
not  at  his  post  at  the  banking  house.  His  partners 
were  greatly  concerned,  as  the  affairs  were  in  a  most 
unsatisfactory  condition,  and  became  alarmed  at  his 
continued  absence.  Soon  the  bank  stopped  payment. 
A  great  consternation  and  much  indignation  was  the 
consequence,  in  the  midst  of  which  Fordyce  returned. 
He  made  a  confession  which  entirely  exonerated  his 
partners  from  all  blame ;  he  stated  that  he  alone 
was   the   guilty  party. 

The  stoppage  of  the  house  had  a  wide  and  disas- 
trous effect.  Many  other  houses  had  to  suspend 
payment,  amongst  others  were  Glyn  &  Hallifax,  but 
they  resumed  in  a  few  days.  It  is  said  that  Drum- 
mond's  were  only  saved  by  General  Smith,  who 
advanced  them  £150,000.  Two  city  gentlemen,  ruined 
by  the  stoppage,    shot   themselves. 

It  is  due  to  Fordyce  to  say  that  when  he  found 
the  close  corner  into  which  his  speculations  were 
driving  him  he  made  the  most  strenuous  efforts  to 
bolster  up  the  house  which   was  tottering  to  its   fall. 


There  is  a  good  tale  told  of  one  person  to  whom 
he  made  application.  He  went  one  day  to  a  Quaker 
and  applied  for  assistance,  putting  his  case,  no  doubt, 
in  a  very  strong  Hght.  The  Quaker  listened  atten- 
tively, and  then  remarked,  **  Friend  Fordyce,  I  have 
known  many  men  ruined  by  two  dice,  but  I  will  not 
be  ruined  by  four  dice." 

Glyn,  Mills,  Currie  &  Co.  were  the  first  of  the 
private  banks  to  adopt  the  joint- stock  system  of 
issuing  balance-sheets.  The  business  has  been  built 
up  by  a  series  of  very  able  men,  such  as  the  first 
Lord  Wolverton,  Mr.  G.  Carr  Glyn  (chairman  of  the 
London  &  North- Western  Eailway),  Mr.  Charles  Mills 
(afterwards  Sir  Charles  Mills,  a  wealthy  West  Indian 
merchant),  Sir  Charles  Mills,  the  first  Lord  Hilling- 
don,  the  Hon.  Pascoe  C.  Glyn  (chairman  of  the 
London  &  Brazilian  Bank),  Mr.  B.  W.  Currie  (son 
of  Eaikes  Currie,  formerly  M.P.  for  Northampton  and 
member  of  the  Indian  Council,  who  was  the  first 
person  applied  to  by  the  Bank  of  England  over  the 
Baring   crisis). 

The  following  extract  from  a  book  published  in 
1842  will  doubtless  be  of  interest* :    **  Attempts   have 

*  **  Banks  and  BankerB,"  by  Daniel  Hardcastle,  jun. 

been    made   to   emulate   this   unexampled   fortune,    but 
they  have  proved   abortive.      The   persons   who   made 
them  have  not  been   at   all   equal    to   the    aspiration ; 
they   have   been   deficient    in    the    knowledge    of    their 
own   business  as   much   as   in   knowledge   of    mankind, 
without   which   there  can  be  no  good  or  safe  banking, 
and    have    exhibited    sad    examples    of    rashness    and 
credulity,    improvidence    and    culpability.      Some    have 
formed   branch   mercantile   firms   and  embarked   in  the 
tea   trade,   some   in   the  East   India,   and   some   in   the 
American  trades,  while  a  still  greater  number  have  in- 
volved themselves  in  the  favourite  speculations  of  their 
customers,    until    house   after    house    have    shared    the 
common   reverses   of    commerce,   and   suffered   the   fate 
of    the   various   adventures,   which,   after   first   running 
them  to  a  dead  lock-up,  have  forced  them  to  succumb 
in    poverty    and    disgrace    to    one    or    other    of    the 
repeated  shocks  by  which  the  credit  of   the   mercantile 
and    manufacturing    interests    of    Great    Britain    have 
been  of  late  years  so  disastrously  assailed.      No  faults 
of  this  kind  appear  to  have  been  committed  at  Glyn's 
Bank,  the  partners  of  which,  taking  admirable  advan- 
tage  of   circumstances,    have    turned   the   spirit   of    the 
age    largely     to     their     profit,    without    violating    the 
established  principles  of  sound  and  legitimate  banking. 


"If  there  were  half-a-dozen  houses  in  London  such 
as  Glyn's,  one  would  be  inclined  to  contend  that 
private  banking  has  not  yet  reached  the  climax  of 
its  prosperity.  But,  seeing  as  we  do,  that  every 
year  diminishes  the  number  of  private  banks  in 
London  and  in  the  country ;  that,  on  the  other  hand, 
joint- stock  banks  are  everywhere  on  the  increase, 
while  not  a  single  new  private  co-partnership  in 
banking  is  now  formed ;  it  seems  but  reasonable  to 
believe  that  the  general  law  of  change  which  applies 
to  everything  in  this  world,  and  those  alterations  in 
maturity  and  decay  which  occur  in  all  that  nature 
creates  or  the  art  of  man  produces,  will,  ere  long, 
work  the  ordinary  effects  in  banking  also,  If  so, 
we  are  in  a  state  of  transition  as  to  banking,  and 
the  results  will  be  not  the  less  decided  and  complete 
because  it  will  be  neither  precipitate  nor  unexpected.'* 

In  his  very  interesting  book  **  The  Signs  of  Old 
Lombard  Street,"  Mr.  Hilton  Price,  referring  to  the 
premises  of  this  bank,  says :  *'  No.  67.  This  house 
was  supposed  to  occupy  the  site  of  '  The  Anchor,' 
but  which  *  Anchor,'  whether  •  The  Anchor  and  Three 
Crowns '  or  •  The  Blew  Anchor '  we  cannot  tell ;  but 
Messrs.   Glyn,  Mills,  Currie  &  Co.  possess  a   tradition 


that  the  house  was  '  The  Anchor,'  therefore  there  is 
little  doubt  about  it.  This  house  has  not  much 
history.  In  1801  Messrs.  Bowles,  Brown  &  Co., 
bankers,  occupied  it  for  a  few  years,  and  in  1827 
Messrs.  Glyn,  Mills  &  Co.  took  the  house,  having 
moved  out  of  Birchin  Lane.  No.  67  was  the  resi- 
dence of  Sir  Martin  Bowes,  who  died  in  1666,  seized 
of  *  The  White  Lion,'  in  the  parish  of  St.  Mary 
Woolnoth,  Lombard  Street,  leaving  it  to  his  son 
Thomas  by  will.  It  has  always  been  supposed  that 
Sir  Martin  left  this  house  to  the  Goldsmiths'  Com- 
pany; it  is  quite  certain  that  it  belongs  to  them, 
and  has  done  so  since  1610.  This  is  the  second 
time  Messrs.  Glyn  &  Co.  had  premises  in  Lombard 
Street.  They  now  occupy  a  very  large  block  from 
Birchin  Lane  on  the  east  to  Change  Alley  on  the 
west,  comprising  Nos.  68  to  67,  and  all  the  houses 
in   the   rear   to   Change   Alley  on   the   north." 

In  his  **  Handbook  of  London  Bankers,"  Mr.  Hilton 
Price  says :  '•  This  firm,  which  has  the  reputation 
of  having  a  larger  business  than  any  private  bank- 
ing house  in  the  city  of  London,  appears  to  have 
commenced  in  Lombard  Street  (so  far  as  can  be 
told   by   '  The  Little   London  Directory ')   between  the 


years  1740  to  1754,  the  precise  date  being  difficult 
to  ascertain  in  consequence  of  no  list  of  bankers 
being  forthcoming  for  the  interval  between  those  two 
dates.  The  style  of  the  firm  in  1754  was  Vere, 
Glyn,  &  Hallifax.  There  is  little  doubt  that  the 
firms  of  Vere,  Glyn  &  Co.  and  Vere,  Asgill  &  Co. 
had  a  common  origin,  and  were  started  by  Mr.  Joseph 
Vere,  and  that  between  1752  and  1754  a  dissolution 
took  place  in  the  partnership,  as  we  find  upon  a  cash 
note  of  Messrs.  Samuel  Child  &  Co.,  of  September, 
1752,  the  following  endorsement:  *J.  Meredith,  wit- 
ness, T.  Huck,  for  Messrs.  Vere,  Asgill  &  Co.' ; 
and  upon  a  similar  note  of  Child  &  Backwell's  in 
February,  1754,  *  Eobert  Carr,  witness  T.  Huck,  for 
Messrs.    Vere,   Glyn   &   Co.'" 

The  latter  firm  moved  to  Birchin  Lane,  whereas 
Asgill  &  Co.  remained  in  Lombard  Street.  In  1754, 
Henry  Milton  witnessed  signatures  for  the  firm,  and 
he  was  subsequently  admitted  into  the  partnership. 
In  1770,  their  house  in  Birchin  Lane  was  numbered 
18,  and  the  firm  consisted  of  Sir  Kichard  Glyn, 
knight  and  baronet,  M.P.  for  the  City  of  London, 
Alderman  of  Dowgate  Ward,  and  a  colonel  in  the 
City  Militia ;  and  Thomas  Hallifax,  who  was  Alderman 


of  Aldersgate  Ward.  About  1773  Sir  Eichard  Glyn 
retired,  and  Sir  Thomas  Hallifax  became  the  head  of 
the  firm,  and  admitted  three  partners,  the  firm  in 
that  year  consisting  of  Sir  Thomas  Hallifax,  Mills, 
E.  C.  Glyn  &  Milton.  The  next  change  to  be  noted 
was  in  1777,  when  Mr.  Charles  Mills  came  into  the 
firm  as  fourth  partner.  In  1788  or  1784  Mr.  Mills, 
senior's  name  disappeared  from  the  firm,  which  be- 
came Sir  Thomas  Hallifax,  Eichard  Carr  Glyn,  Charles 
Mills  &  Henry  Milton.  In  1789  the  name  of  Sir 
Thomas  Hallifax  is  not  seen,  and  the  business  was 
conducted  at  12,  Birchin  Lane,  by  E.  C.  Glyn, 
Mills  &  Milton.  About  1790,  according  to  the 
''Directory,"  Eichard  Carr  Glyn  was  knighted.  In 
1791  the  firm  was  Glyn,  Mills,  Hallifax  &  Co.,  and 
it  continued  so  until  1811,  when  the  style  of  the  firm 
became  Glyn,  Mills,  Hallifax,  Glyn  &  Co.,  so  re- 
maining until  1823,  when  another  Mr.  Mills  came 
into  it.  In  1826  they  moved  to  their  present  pre- 
mises, No.  67,  Lombard  Street,  which  house  belongs 
to  the  Goldsmiths'  Company,  having  been  left  to 
them  by  Sir  Martin  Bowes,  the  eminent  goldsmith, 
in  the  reign  of  Queen  Elizabeth.  The^,  style  of  the 
firm  was    again    altered   in   1830    to   Sir   E.    C.   Glyn, 


Hallifax,  Mills  &  Co.,  consisting  of  Thomas  Hallifax, 
Charles  Mills,  Sir  Richard  P.  Glyn,  Bart.,  George 
Carr  Glyn,  Thomas  Hallifax,  junr.  and  Edward  Wheler 
Mills.  In  1851  it  became  Glyn,  Mills  &  Co.,  which 
it  continued  to  be  till  1864,  when  an  amalgamation 
was  effected  with  the  old  firm  of  Curries  &  Co.,  since 
which  time  the  style  of  the  firm  has  been  Glyn, 
Mills,   Currie  &  Co. 

The     balance-sheet,     dated    81st     Januuary,     1904, 
showed  as  follows  : — 

Thibty-Ninth  Statement  of  Assets  and 


3l8T  December,  1904. 

Dr.                                   Liabilities. 

£        s. 



Capital  Paid  up        

1,000,000    0 



Reserve   Fund 

500,000    0 



Current  Accounts      

10.357,136    8 



Deposit  Accounts      

3,454,556  10 



Reserve  for  Premises          


60,000    0 


Liabilities  on  Account  of  Acceptances, 
Endorsements,  &c.  (covered  by 
Securities),  not  included  in  Balance- 
sheet  : — 

£1,434,255    12    11 

£15,371,692  19    0 


Cr.  Assets.  £        s.    d. 

By  Cash  in  Hand  and  at  Bank  of  England        1,791,212    6    5 

„    Money  at  Call  and  at  Short  Notice    ...        4,346,545    2    0 

i,  Investments : — 

,,  Two  and  a-half  per  cent.  Con- 
sols and  Exchequer  Bonds...     1,500,000    0    0 

„  Securities  of,  or  guaranteed 

by  the  British  Government    1,273,858    9    8 

„  Government  of  India  and 
Colonial  Government  Se- 
curities           64,740    0    0 

2,838,598    9    8 

Bills  Discounted,  Loans  and  other  Securities       6,215,337    Oil 
Bank  Premises 180.000    0    0 

£15,371,692  19    0 



Lloyds'  Bank,   Limited. 

The  largest  bank  in  the  world  I  Such,  in  a  few 
words,  is  a  true  definition  of  Lloyds'  Bank.  Of 
course  in  making  such  a  sweeping  assertion  we 
entirely  exclude  those  banks  holding  Government 
deposits.  We  take  the  various  banking  institutions 
with  the  Government  balances,  if  any,  deleted,  and 
contend  that  Lloyds  is  the  largest  bank  in  the 
world.  In  comparatively  few  years  it  has  attained 
this  proud  position,  which  can  be  mainly  attribut- 
able to  wise  direction,  careful  forethought,  admirable 
organization,  and  an  immediate  grasp  of  valuable 
opportunities  which  presented  themselves  for  judicious 
amalgamations  and  absorptions.  Lloyds'  Bank  repre- 
sents a  combination  of  all  sorts  of  interests :  it  has 
been  the  pioneer  of  bank  amalgamations  and  absorp- 
tions :  it  has  out-distanced  all  its  competitors  and 
out-passed  all  its  rivals.  No  opportunity  of  a  really 
sound    acquisition    of    business    has    been    allowed    to 


slip :  a  hawk's  eye  seems  to  have  been  kept  on  all 
available  chances,  and  these  have  been  acted  upon 
without   a   moment's   delay. 

When  one  glances  back  over  past  years  one  almost 
feels  disposed  to  question  whether  the  progress  has 
not  been  too  great,  the  amalgamations  and  absorp- 
tions too  frequent,  the  rapid  increase  of  business  too 
rapid  for  the  bank  to  adequately  deal  with  it.  But 
to  all  these  doubts  and  fears  the  published  audited 
balance-sheets  give  a  most  emphatic  denial.  The 
career  of  Lloyds  has  been  one  of  uninterrupted  pro- 
gress. Of  course,  when  banking  business  has  been 
very  bad,  this  institution,  like  the  bulk  of  the  others, 
has  had  to  drop  its  dividend,  but  that  is  merely 
a  matter  of  account.  In  prosperous  years  a  large 
proportion  of  the  profits  have  been  added  to  the 
reserve  fund,  so  that  the  shareholders  in  "lean" 
years  are  quite  satisfied  that  their  material  interests 
are  well  looked  after ;  with  the  result  that  there  is 
now  the  substantial  sum  of  £2,600,000  laying  at  the 
disposal  of  the  directors  for  the  purposes  of  the  bank 
business  or  for  the  equalization  of  dividends.  So  far 
as  we  can  see  there  has  not  been,  from  its  incep- 
tion till  the  present  day,  one  single  slip  in  the 
management  of  this  now  gigantic  financial  institution. 


Let  us  go  somewhat  into  its  family  history,  for  it 
is  always  interesting  to  most  people  to  turn  over  old 
leaves.  Although  Lloyds'  Bank,  Limited,  seems  to 
many  of  us  a  comparatively  recent  institution  it  will 
not  do  to  forget  the  fact  that  its  origin  dates  back 
as  far  as  1764  or  1765.  It  was  on  the  20th  April, 
one  hundred  years  later,  that  Lloyds'  Banking  Com- 
pany, Limited,  was  incorported  with  a  nominal  capital 
of  £2,000,000  divided  into  40,000  shares  of  £50  each. 
The  institution  was  formed  by  the  amalgamation  of 
two  old  private  houses — Lloyds  &  Co.  (better  known 
as  the  Birmingham  Old  Bank)  and  Moilliet  &  Sons, 
who  were  also  private  bankers  of  Birmingham.  The 
following  extract  from  the  original  prospectus  is  well 
worth   reading : — 

**  After  allotting  12,000  shares  to  Messrs. 
Lloyds  &  Co.  and  Messrs.  Moilliet  &  Sons,  it 
is  proposed  to  issue  12,500  at  a  premium  of 
£6  each,  and  this,  it  is  estimated,  will  raise 
a  sum  equal  to  the  amount  required  to  be 
paid  for  the  purchase  of  the  goodwill,  so  that 
the  whole  amount  to  be  received  for  deposits, 
and  subsequent  calls  may  be  used  for  the 
purposes  of  the  bank.     It   is   proposed  that  the 


remaining  16,000  shares  shall  be  reserved  for 
issue  at  such  premiums,  at  such  times,  and  to 
such  persons  as  the  directors  shall  consider 
most  conducive  to  the  interests  of  the  bank. 
The  surplus  premiums,  if  any,  not  required 
for  the  payment  of  the  goodwill  will  be  carried 
to  the  reserve  fund,  and  it  is  intended  that 
until  such  fund,  arising  from  this  source  and 
from  profits,  shall  amount  to  a  sum  equal  to 
one-fifth  of  the  paid-up  capital  no  dividend 
shall  be  paid  exceeding  10  per  cent,  per 
annum   on   the   amount   of   paid-up   capital." 

It  was  arranged  that  a  deposit  of  £5,  in  addition 
to  the  premium,  should  be  paid  on  the  shares  issued, 
and  that  further  calls  on  the  shares  should  be  £2  10s. 
each.  Then  comes  a  most  important  condition,  which 
shows  that  from  the  very  first  the  bank  recognised 
the  importance  of  holding  a  substantial  amount  of 
reserved  capital — to  meet  all  requirements,  available 
in   case   of  need — the   paragraph   continuing: — 

*'  The  aggregate  calls  will  not  exceed  £12  10s. 
per  share ;  the  remaining  £87  10s.  is  to  be 
available  for  the  ultimate  security  of  the  bank." 


It  has  been  by  this  wise  prescience  that  a  great  deal 
of  the  latter  success  of   Lloyds  has  been  due. 

No  sooner  had  the  bank  started,  and  its  principles 
were  known  and  appreciated,  than  support  came  in 
from  all  sides.  The  intending  customer  knew  full 
well  that  if  Lloyds  **took"  his  account  he  would 
be  treated  both  fairly  and  well,  that  the  reputation 
of  the  bank  would  most  certainly  reflect  most  materi- 
ally on  his  credit,  and  that  the  authorities  would 
always  be  most  willing  to  meet  him  in  a  fair  spirit. 
The  reputation  which  Lloyds  at  once  enjoyed  has 
been  continuously  maintained,  despite  the  changes  which 
have  taken  place  in  the  board  of  management.  The 
motto  of  the  bank,  all  through,  seems  to  have  been 
"Onward,"  and  by  judicious  extensions,  courtesy, 
and  sound  business  arrangements  they  have  had  a  con- 
tinuous run  of  prosperity  on  the  path  of  progress. 
And  it  must  not  be  thought  for  a  moment  that  the 
directorate  have  yet  achieved  the  end  of  their  ambi- 
tion, for  it  is  a  common  remark  in  the  city,  *'  What 
is  Lloyds  intending   to  do  next  ? " 

During  the  first  year  of  its  existence  Lloyds  absorbed 
the  Wednesbury  Old  Bank  (Messrs.  F.  &  H.  Williams) 
and  when  the  first  balance-sheet  was  issued  the  deposits 


exceeded  £1,000,000.     It  is  more  than  probable   that 

a  copy  of  the  first  published  balance-sheet  may  be  of 

interest.      Here  it  is  : — 

3l8T  Dbcember,  1865. 

Capital  Paid-up  

Deposit,  Current,  and  other  Accounts 

Reserve  Fund  

Profit  and  Loss  
















126,170  16 
655,435  0 












Cash  in  Hand,  at  Bank  of  England,  and  at 

Bills  of  Exchange 

Advances  on  Current  Accounts,  Loans  on 
Stocks,  Purchase  Account,  and  other 

Bank  Premises,  Furniture,  Fittings,  &c. 

Preliminary  Expenses,  less  Amount  written 

It  "was  in  1866  that  Lloyds  first  appeared  as 
a  power  in  the  amalgamating  world,  and  commanded 
the  attention  which  has  since  been  devoted  to  this 
great  institution.  It  was  in  that  year  that  the 
Warwick  &  Leamington  Banking  Company  and  the 
Stafford  Old  Bank  (Stevenson,  Salt  &  Co.)  were  taken 


over — two  old  institutions  with  very  wide- spread  con- 
nections in  their  respective  districts.  In  1868  the 
business  of  Messrs.  A.  Bullin  &  Son  (the  Rugby 
Old  Bank)  was  secured,  and  four  years  later  terms 
of  amalgamation  were  arranged  with  the  Wolverhamp- 
ton Old  Bank  (R.  &  W.  F.  Fryer).  Two  years  after- 
wards Lloyds  made  a  purchase  of  the  Shropshire 
Banking  Company.  From  that  date  the  bank  con- 
tinued to  increase  the  grip  already  held  of  the  Mid- 
lands— the  total  of  the  current  and  deposit  accounts 
exceeding  five  millions  sterling.  It  was  in  1879  that 
a  purchase  of  the  Coventry  &  Warwickshire  Banking 
Company  was  made,  and  the  following  year  the  busi- 
ness of  Beck  &  Co.  (the  Shrewsbury  &  Welshpool 
Old  Bank)  was  secured.  After  these  developments 
there  came  a  lull  in  the  tide  of  absorptions  and 
amalgamations.  The  financial  world  was  on  the  qui 
vive,  as  it  was  well  known  that  Lloyds  had  not 
come  to  a  full  stop.  All  bankers  were  on  the  alert 
as  to  what  the  next  surprise  would  be — in  what  direc- 
tion would  be  the  next  spring.  Year  after  year 
passed  without  any  further  developments,  except  that 
the  total  of  the  current  and  deposit  accounts  steadily 
and    largely    increased.      Then,    in     1884,    came    the 


announcement  that  terms  of  amalgamation  had  been 
arranged  with  two  of  the  best  known  private  houses 
in  Lombard  Street — two  of  the  old  London  landmarks 
— Barnett,  Hoares  &  Co.  and  Bosanquet,  Salt  &  Co. 
— the  former  of  which  was  established  in  1677, 
and  the  latter  in  1796.  Of  each  of  these  we  shall 
say  more  towards  the  close  of  this  chapter.  The 
name  of  the  large  and  growing  institution  was,  on  the 
2nd  April,  1889,  altered  to  Lloyds,  Barnetts  &  Bosan- 
quets'  Bank,  Limited.  It  is  a  great  mistake  for  any 
bank  to  have  too  long  and  cumbrous  a  title,  and 
soon  the  directors  of  Lloyds  recognising  this,  proposed 
a  resolution,  which  was  immediately  adopted,  that 
once  more  the  name  of  the  bank  should  be  Lloyds' 
Bank,   Limited,    only. 

But  up  to  this  period  the  amalgamations  which 
Lloyds  were  destined  to  effect  had  scarcely  begun. 
In  1888  the  business  of  the  private  bankers,  Pritchard, 
Gordon  &  Co.  (of  Broseley  and  Bridgnorth)  was 
acquired,  and  the  next  year  the  Birmingham  Joint- 
Stock  Bank,  Limited,  and  the  Worcester  City  &  County 
Banking   Company,   Limited,   were   absorbed. 

The  entre  to  the  London  Clearing  House  by  the  ex- 
ceedingly judicious  amalgamation  with  Barnett  &  Hoares 


was  then  beginning  to  tell  its  own  tale,  and  no  bank- 
ing official  afterwards  was  in  the  least  degree  surprised 
at  anything   they  heard   about   Lloyds. 

In  1890  the  bank  secured,  by  purchase  or  absorp- 
tion, the  two  century  old  private  houses  of  Wil- 
kins  &  Co.  (founded  in  1778),  and  Beechings  &  Co. 
(of  Tunbridge  "Wells,  Tonbridge,  Hastings,  &c.). 
Having  thus  got  well  established  in  the  south  of 
England  the  directors  strengthened  their  position  by 
purchasing  the  business  of  Cobb  &  Co.  (of  Margate) 
— a  business  established  in  1785.  The  same  year  they 
procured  the  bank  of  Hart,  Fellows  &  Co.,  of  Not- 
tingham (1808).  It  was  in  this  year,  too,  that  a  very 
important  private  institution  in  the  city  of  London  was 
secured — that  of  Messrs.  Praed  &  Co.,  of  Fleet  Street, 
one  of  the  old  firms  of  goldsmiths.  Not  content  even 
with  this  splendid  stroke,  nor  with  the  fact  that  the 
balance  of  current  and  deposit  accounts  now  exceeded 
£21,000,000,  Lloyds,  in  1892,  was  fortunate  enough 
to  secure  the  business  of  the  widely  known  old  bank- 
ing firm  of  Richard  Twining  &  Co.,  of  the  Strand. 
During  the  same  year  the  Bristol  &  West  of  England 
Bank  was  taken  over,  and  by  this  judicious  move 
Lloyds    obtained    a    footing    in    Wales    and   the    west 


of  England,  hitherto  not  obtainable ;  and  they  have 
not  been  slow  in  making  the  most  of  it.  This  one 
step  had  given  the  bank  forty  fresh  offices.  The 
following  year  the  business  of  Curteis,  Pomfret  &  Co., 
of  Rye,  was  secured,  and  soon  after  terms  of  arrange- 
ment were  made  for  amalgamation  with  or  absorp- 
tion of  Herries,  Farquhar  &  Co.,  of  St.  James's 
Street, — the  firm,  one  of  the  earlier  partners,  or 
founders,  of  which  has  been  quite  erroneously  credited 
with  the  honour  of  being  the  inventor  of  circular 
notes,  which,  as  a  matter  of  fact  were,  it  has  been 
clearly  proved,  in  current  use  in  the  flourishing  days 
of  Nineveh.  This  arrangement  gave  the  bank  a  splendid 
west-end  and  aristocratic  connection,  and  increased  its 
reputation   greatly. 

In  1894  the  business  of  Bromage  &  Co.  (established 
1819)  the  Old  Bank,  Monmouth,  was  absorbed.  In 
1895  Lloyds  were  very  fortunate  in  securing  the  busi- 
ness of  Paget  &  Co.,  of  Leicester,  a  rich  bank, 
remarkably  well  connected,  which  was  founded  in 
1825.  The  absorption  of  Williams  &  Co.,  the  Old 
Bank,  Chester,  strengthened  the  position  still  further 
in  the  north-west  of  England.  As  the  bank  had 
been  established  since  1792,  it  will  be  readily  admitted 


that  its  connection  was  considerable.  During  the  same 
year  a  very  discreet  move  in  advance  was  made  by 
the  purchase  of  the  County  of  Gloucester  Bank,  the 
many  branches  of  which  tended  to  foster  the  growth 
of  the  already  extensive  business  of  Lloyds  in  that 
district.  In  1898  the  tiny  bank  of  Jenner  &  Co. 
was  purchased,  but  in  1899  the  more  than  century 
old  private  banking  house  of  Stephen  Blandy  &  Co., 
of  Beading,  was  procured,  and  the  same  year  terms 
of  amalgamation  were  arranged  with  the  wealthy 
Burton   Union   Bank,   Ltd. 

These  amalgamations,  however,  were  only  a  prelude 
to  the  next  grand  coup  for  which  Lloyds  were  pre- 
paring. Much  had  already  been  doue,  much  more 
had  to  be  done ;  the  financial  world  had  been  sur- 
prised before,  now  it  was  going  to  be  far  more 
startled,  with  such  a  shock  as  it  had  not  experienced 
since  the  notice  of  the  banks  taken  over  by  Barclay 
some  years  before.  In  the  year  1900  it  was  announced 
that   terms   of    amalgamation   had   been   arranged  with 

Cunliffes,  Brooks  &  Co.,  Manchester,  &c.  (estab- 
lished  1792), 

Brooks   &   Co.,   London   (established   1864). 

William  Williams,   Brown   &   Co.   Leeds   (estab- 
lished  1818). 


Brown,  Janson  &  Co.,  London  (established  1813). 

Vivian,    Kitson    &    Co.,    Torquay    Bank    (estab- 
lished  1832). 

Liverpool   Union   Bank,   Limited. 

The  importance  of  the  acquisition  of  the  first  four 
in  the  above  list  will  be  readily  recognised,  but, 
perhaps,  it  may  be  that  the  purchase  of  Cunliffe 
Brooks,  of  Manchester,  and  the  Liverpool  Union  Bank 
may  have  weighed  heavier  in  the  opinions  of  the 
banking  world,  since  by  procuring  these  two  institu- 
tions Lloyds  became  a  power  to  be  reckoned  with  in 
the  palatine  county — a  position  the  bank  had  not 
hitherto   enjoyed. 

After  a  lull  of  two  years  the  exceptionally  good 
business  of  Messrs.  Pomfret,  Burra  &  Co.,  the  bank 
of  Ashford,  Kent,  was  secured,  as  was  also  the  sound 
little   connection  of  the  Bucks  &  Oxon  Bank,  Limited. 

In  1903  the  directorate  took  an  exceptionally  wise 
step  in  securing  the  magnificent  business  of  Hodgkin, 
Barnett  &  Co.,  of  Newcastle- on-Tyne  and  elsewhere. 
It  is  true  that  this  bank  was  only  started  in  1859, 
but  in  the  troublous  times  through  which  the  north 
of  England  has  passed,  it  has  made  its  mark,  and 
has    a   history    quite    its    own.      The    same    year    the 


business    of    Grant,  Maddison    &    Co.,   of  Portsmouth, 
was   secured. 

The  report  of  the  directors  for  the  year  ended 
81st  December,  1904,  presented  to  the  shareholders 
at  the  forty-seventh  ordinary  general  meeting,  held  in 
Birmingham  on  the  27th  January,  1904,  was  as 
follows : — 

*'  The  available  profit  for  the  past  year,  including 
the  amount  brought  forward,  after  payment  of  salaries, 
pensions,  other  charges  and  expenses,  and  the  annual 
contribution  of  £4,000  to  the  Provident  and  Insurance 
Fund,  and  making  full  provision  for  rebate,  bad  debts 
and  contingencies,  is  £764,315  3s.  9d.  Out  of  this 
an  interim  dividend  at  the  rate  of  17 J  per  cent,  per 
annum,  free  of  Income  Tax,  amounting  to  £310,450, 
was  paid  for  the  half-year  ended  the  30th  day  of 
June  last ;  £30,000  has  been  written  off  the  Bank 
Premises  Account,  and  £33,653  16s.  Od.  has  been 
applied  in  payment  of  Income  Tax  on  the  dividends, 
etc.  From  the  balance  remaining,  your  directors 
recommend  that  a  dividend  of  15s.  per  share,  being 
at  the  rate  of  ISf  per  cent,  per  annum  for  the  past 
half-year,  amounting  to  £332,625,  be  now  declared, 
and    that    the    balance,    £57,586    8s.    9d.,    be    carried 


forward  to  the  Profit  and  Loss  Account  of  the 
present  year.  Mr.  Edward  Nettlefold,  of  Harborne 
Hall,  Birmingham,  has  been  elected  to  a  seat  on  the 
Board  in  the  place  of  the  late  Sir  Thomas  Salt, 
Bart.  The  directors  who  retire  at  this  meeting  are 
Messrs.  Charles  Edward  Barnett,  J.  B.  Close  Brooks, 
and  Augustus  William  Summers.  They  are  all  eligible, 
and  offer  themselves  for  re-election." 
The  balance-sheet  for  the  year  1904  was  as  below : — 

Liabilities.  £  s.    d. 

Current,  Deposit,  and  other  Accounts,  includ- 
ing Rebate  of  Bills  and  provision  for  Con- 

Profit  and  Loss  Balance,  as  per  Account  below 

Bills  Accepted  or  Endorsed     

Liabilities  in  respect  of  Customers'  Loans 
to  Brokers,  fully  secured...        £48,500 

56,163,714  16  10 
390,211  8  9 




Capital  Paid  up,  viz.,  443,500  Shares  of  £50 

each,  £8  per  Share  paid        3,548,000    0    0 

Reserve  Fund      2,600,000    0    0 

£66,271,050    9    0 


Assets.  £          s.    d. 

Cash  in  hand  and  with  the  Bank  of  England  9,710,106  19    2 

Cash  at  CaU  and  Short  Notice 4,716,903    3    9 

Bills  of  Exchange          6,996,079  11    6 

Consols  (at  85)  and  other  British  Government 
Securities  6,144,919    9    5 

Indian  and  Colonial  Government  Securities, 
Corporation  Stocks,  English  Railway  De- 
benture and  Preference  Stocks,  and  other 
Investments     4,009,192  11    0 

31,577,201  14  10 

Advances  to  Customers  and  other  Securities...        29,586,94115    6 

Liabilities  of  Customers  for  Bills  Accepted  or 
Endorsed  by  the  Company 3,569,124    3    5 

Bank  Premises  (after  appropriation  from 
Profit,  as  below)         1,537,782  15    3 

£66,271,050    9     0 

Barnett,  Hoabe  &  Co. 

A  few  words  as  to  this  old  house  may  be  of 
interest.  Mr.  F.  G.  Hilton  Price  states  that  it 
probably  was  one  of  the  oldest  businesses  in  London. 
For  many  years  the  bank  occupied  the  site  of  the 
premises  then  known  as  *'  The  Black  Horse,"  and 
it  is  interesting  to  note  that  during  the  last  jubi- 
lations in  the  city,  the  old  houses  displaying  their 
signs,  Lloyds  flaunted  their  '*  Black  Horse."  From 
••  The  Little  London  Directory "  for  1677  it  appears 
that    a    goldsmith    of    the    name   of    Humph.    Stocks 


was  at  **  The  Black  Horse,"  in  Lombard  Street. 
"Now  it  appears  from  Pepys'  Diary,"  says  Mr.  Price, 
"that  Mr.  Stokes,  as  he  was  pleased  to  call  him, 
was  in  existence  in  his  time,  fully  twelve  years 
earlier.  He  was  probably  Samuel  Pepys'  own  gold- 
smith, and  it  was  with  him  most  likely  that  he  kept 
his  private  account.  That  he  bought  his  plate,  &c., 
of  him  is  proved  by  the  following  extracts  from  the 
diary.  The  account  Pepys  kept  with  Alderman  Back- 
wall  looks  more  like  an  official  one  than  one  of 
a  private  character.  Under  date  10th  June,  1665, 
he  writes :  *  Seeing  and  saluting  Mrs.  Stokes,  my 
little  goldsmith's  wife,  in  Paternoster  Eow,  and  there 
bespoken  a  silver  chafing  dish  for  warming  plates.' 
Again,  under  date  2nd  September,  1666,  he  writes : 
•  And  among  others  I  now  saw  my  little  goldsmith 
Stokes  receiving  some  friend's  goods,  whose  house  itself 
was  burned  down  the  day  after.' "  In  1740  Messrs. 
John  Bland  &  Son  were  at  "The  Black  Horse," 
but  it  was  not  till  1761  that  the  name  of  Barnett 
appeared  for  the  first  time,  when  the  firm  was  known 
as  Bland,  Barnett  &  Co.  Five  years  later  the  firm 
was  known  as   Bland   &   Barnett.      In    1770  the   sign 


of  "The  Black  Horse"  became  known  as  QQ  Lom- 
bard Street,  and  about  1772-3  Mr.  Samuel  Hoare 
entered  the  firm  as  a  partner.  In  1790  Mr.  Bar- 
nett,  junr.,  was  introduced  to  the  firm,  which  was 
then  known  as  Barnett,  Hoare,  Hill  &  Barnett.  Mr. 
Hill  became  a  partner  in  1780,  but  the  list  of  1808 
shows  that  then  he  had  left  the  firm.  In  1826  the 
title  of  the  bank  was  altered  to  Barnett,  Hoare  &  Co., 
and  remained  so  till  1864,  when  an  amalgamation  was 
effected  with  Ilanbury,  Lloyds  &  Co.,  when  it  was 
again  altered,  this  time  to  Barnetts,  Hoares,  Han- 
burys  &  Lloyd,  the  business  being  then  conducted  in 
both  60  and  62  Lombard  Street.  But  very  few 
changes  took  place  till  the  union  with  Lloyds  &  Bosan- 
quets   in   1884. 

Messrs.  Bosanquet,  Salt  &  Co. 
This  bank,  to  which  reference  has  already  been 
made  in  this  chapter,  was  established  as  far  back 
as  1800,  when  Mr.  Bosanquet,  who  had  been  a  mem- 
ber of  the  firm  of  Sir  William  Leman,  Balles,  Fur  ley, 
Lubbock  &  Co.  since  1785  left,  and  entering  into 
partnership  with  Messrs.  Beachcroft  &  Reeves,  started 
a  separate  establishment  at  78  Lombard  Street,  under 


the  title  of  Bosanquet,  Beachcroft  &  Keeves.  In 
1810  the  firm  was  entitled  Bosanquet,  Beachcroft, 
Pitt  &  Anderson,  Seven  years  later  the  name  of 
Beachcroft  had  disappeared,  and  that  of  Franks  was 
added,  the  house  then  heing  known  as  Bosanquet, 
Pitt,  Anderson  &  Franks.  Mr.  Whatman  joined  the 
bank  in  1822,  and  we  note  that  in  the  list  of 
bankers  for  1839  the  name  Pitt  does  not  appear  in 
connection  with  the  firm.  In  1843  Mr.  S.  Bosanquet 
died,  and  in  the  following  year  the  firm  was  called 
Bosanquet  &  Franks.  Mr.  W.  G.  Whatman  becoming 
partner  in  1843  his  name  was  added  to  the  title  of 
the  firm.  In  1855  Mr.  Harman  entered  the  firm, 
and  eleven   years   subsequently   Mr.   Franks   retired. 

In  1868  an  amalgamation  was  effected  with  the 
Stafford  Bank — Messrs.  Stevenson  &  Salt — an  institu- 
tion founded  in  1787.  ]n  1872  the  title  of  the  firm 
was  Bosanquet.  Salt,  Whatman,  Harman,  Salt,  Bosan- 
quet &  Whatman,  but  when  Lloyds  came  to  London 
in  1887  and  took  over  this  old  house  and  that  of 
Barnetts  Hoares  the  name  of  the  amalgamated  banks 
was  altered  to  Lloyds,  Barnetts  &  Bosanquets'  Bank, 
Limited,  only  to  be  curtailed  at  a  later  date,  as 
already   stated. 


In  "Wade's  Chronology"  there  is  a  paragraph 
which  probably  refers  to  one  of  the  partners  of  the 
firm  of    Bosanquet   &   Co. : — 

*'0n  the  4th  April,  1798,  Messrs.  Hellish, 
Bosanquet  &  Pole,  merchants  of  the  city,  were 
stopped  by  three  highwaymen  on  Honnslow 
Heath.  After  robbing  them,  without  resistance, 
of  their  money  and  watches,  one  of  the 
robbers  wantonly  fired  into  the  chaise  and 
mortally  wounded   Mr.    Mellish." 



The  London  &  County  Banking  Company,  Limited. 

It  was  not  long  after  the  establishment  of  the 
London  &  Westminster  Bank — only  two  years — when 
there  was  founded  the  Surrey,  Kent  &  Sussex  Bank- 
ing Company,  which,  in  1836,  started  business  in 
High  Street,  Soufchwark.  The  principle  inculcated  by 
Mr.  Gilbart  had  taken  root,  with  the  result  that  many 
were,  disposed  to  adopt  it  as  their  own.  Every  year 
showed  that  Mr.  Gilbart  had  hit  on  the  right  idea, 
catering  for  the  small  tradesmen,  the  middle  class,  as 
opposed  to  the  rule  that  then  obtained  of  allowing 
only  the  well  to  do  and  wealthy  to  have  the  privilege 
of   "keeping   a   banker." 

When  the  London  &  County  first  started  business 
as  stated  above  the  competition  with  and  opposition 
from  the  private  bankers  was  exceedingly  keen,  and 
so  far  as  the  latter  were  concerned,  virulent.  The 
private  bankers  considered  the  new  joint-stock  banks 
as  interlopers  founded  and  carried  on  with  a  view 
of   ruining   or   seducing  the  business   which   had   been 


in  their  band3  for  centurieg.     This  had  to  be  stopped 
at  any  cost,  every  possible  obstacle  must  be  thrust  in 
the  way;   under  no  circumstances  whatever  could  joint- 
stock  banks  be  allowed  to  get  a  footing  in  the  metro- 
polis.    Still    more,   every    influence    possible   must    be 
brought  to  bear  to  prevent  these   "  new  fangled "   so 
called  banks  from  entering  the  sacred  precincts  of  the 
Clearing  House.     Would  these  new  institutions  accept 
as  a  customer  a  man  who  could  only  keep  as  a  balance 
of   his    current    account    JBSO,   £25,   or    £20?       Then, 
that  being  so,   they  had   no  right   to   call  themselves 
bankers ;     the  whole  fabric  of  existing  banking  tradi- 
tions must  fall  I     And  yet,  strange  to  say,   these  new 
institutions    not    only    flourished    apparently,    but    in- 
creased in  number.     Not  content  with  one  office  they 
opened  branches,  and  what  was  still  worse  they  seemed 
to  be   constantly  increasing  their  business. 

But  the  strenuous  opposition  of  the  private  bankers 
was  of  no  avail.  The  joint-stock  banks  had  "  come 
to  stay,"  and  not  all  the  concentrated  energy  of  the 
descendants  of  the  goldsmiths,  backed  by  the  en- 
venomed jealousy  of  the  Old  Lady  of  Threadneedle 
Street,  could  stop  their  progress.  There  had  been 
a  revolution,  and  a  successful  one,   too. 


When  the  Surrey,  Kent  &  Sussex  Banking  Com- 
pany was  formed  it  was  prepared  to  fight  for  its 
rights — and  did  so.  There  was  no  intention  on  the 
part  of  the  directors  to  allow  themselves  to  be 
quietly  crushed  out  of  the  running.  That  this  was 
their  view  is  abundantly  proved  from  the  following 
excerpt  from  a  report  which  appeared  in  the  very 
early  days  of  the  bank : — 

"It  (the  bank)  offers  to  individuals  the  opportunity 
of  becoming  their  own  bankers.  As  shareholders  they 
participate  in  the  profits  of  their  accounts.  If  they 
require  accommodation,  a  part  of  the  consideration 
they  pay  for  it  returns  to  them.  If  they  deposit, 
the  amount  is  doubly  fruitful.  First,  they  receive 
from  the  bank  interest  on  the  sum  deposited;  and, 
secondly,  they  share  in  the  profit  which  the  bank 
itself  makes  by  the  use  of  their  investments.  In 
a  word,  private  individuals,  instead  of  giving  the 
profit  of  their  accounts  to  private  bankers,  by  becom- 
ing shareholders  in  this  and  other  joint- stock  banks 
divide  it  among  themselves." 

There  was  the  gauntlet  thrown  down.  The 
London    &    County   practically    challenged   the   private 


bankers  to  do  their  worst.  They  were  quite  pre- 
pared to  stand  or  fall  by  their  principles ;  they 
made  an  offer  to  the  public  which  no  private  bank 
could  do,  and  at  the  same  time  it  became  well 
known  that  the  London  &  County  were  as  willing 
to  accept  small  accounts  as  large  ones.  And  that  is 
the  whole  essence  of  the  principle  of  joint-stocTc 

In  1837  the  head  office  was  removed  to  71  Lom- 
bard Street,  and  in  1841  the  business  of  Hector 
Lacey  &  Co.,  of  Petersfield,  and  that  of  Emmer- 
son  &  Co.,  of  Sandwich,  were  taken  over.  Almost 
immediately  after  the  bank  was  opened  for  business, 
branches  were  established  at  Brighton,  Maidstone, 
Canterbury,  Sevenoaks,  Croydon,  Tonbridge,  Lewes, 
Tunbridge  Wells  and  AVoolwich.  In  1842  the  firm 
of  Davenport,  Walker  &  Co.,  of  Oxford,  and  three 
years  later  that  of  J.  Stovell,  of  Petworth,  were 
absorbed.  Thus  it  will  be  seen  at  quite  an  early 
date  the  London  &  County  commenced  to  absorb 
other  concerns,  but,  it  must  be  noted,  that  the 
amalgamation  mania  has  not  affected  them,  for  with 
the  exception  of  two  or  three  more  fusions  we  shall 
mention  directly,   the    bank   has  stood    absolutely    and 

entirely  on  its  own  merits,  and  the  phenomenal  growth 
of  its  liabilities  and  resources  is  entirely  due  to  genuine 

In  1849  the  business  of  Trapp,  Halfhead  &  Co. 
was  taken  over,  and  in  1851  the  Berks  Union  Bank 
was  absorbed.  In  1858  the  London  &  County  Bank 
purchased  the  business  of  the  Western  Bank  of 
London,  and  their  office  in  Hanover  Square  opened 
up  a  splendid  business  connection  in  that  direction. 
In  1860  Messrs.  Robert  Davies  &  Co.,  an  old  firm 
of  private  bankers  in  Shoreditch,  was  absorbed,  and 
through  this  the  London  &  County  got  their  foot 
firmly  fixed  in  the  east  end  of  London,  and  we  are 
sure  that  most  people  know  that  the  Shoreditch  estab- 
lishment is  one  of  the  most  important  branches  the 
bank  has.  When  the  business  of  Messrs.  Nunn  &  Co. 
was  purchased  in  1870  the  Manningtree  branch  of 
the  bank  was  started.  From  then  till  now  no  amal- 
gamations or  absorptions  of  any  importance  have  taken 
place,  and  the  whole  attention  of  the  directors  has 
been  devoted  to  the  consolidation  and  development  of 
their  business.  That  they  have  succeeded  in  this 
laudable  programme  none  can  deny  since  the  balance- 
Bheets  speak  for  themselves. 

It    may    be   of    interest    to    compare    the    following 
figures  taken  from  the  balance-sheets : — 

Current  and   Deposit   Aooounts  and   Aoceptanoes. 

81st  Dec, 




£351,000  (app 


£3,281,000   „ 


£12,250,000   „ 


£21,250,000   „ 


£30,500,000   „ 


£45,300,000   „ 


£46,161,224   „ 

Surely  the  London  &  County  have  reason  to  be 
proud  of  their  record  I  Like  the  London  &  West- 
minster the  career  of  this  bank  has  been  one  of 
continuous  prosperity;  the  directors  have  endeavoured 
to  meet  the  **  people  "  and  the  *'  people "  have 
appreciated  and  reciprocated  the  endeavour,  with  the 
consequent  result  that  the  bank  is  to-day,  as  it  has 
been  for  many  years,  one  of  the  most  popular  in 
the   country. 

There  was  one  very  important  point  which  was  in 
the  earliest  days  of  the  career  of  the  bank  seized 
upon  and  followed  up  by  the  then  directors,  viz.,  that 
banking  facilities  were  not  needed  by  Londoners  only, 


but  that  those  in  the  suburbs  had  equal  claims  on 
the  accommodation  which  a  good  bank  could  afford. 
Hence  it  was  that  the  plan  was  adopted  of  opening 
up  branch  establishments  in  all  the  leading  suburbs 
and  those  which  showed  signs  of  a  later  develop- 
ment, and  in  the  home  counties.  The  experiment 
proved  eminently  successful,  so  much  so  that  there 
are  few  towns  of  any  importance  in  the  home 
counties,  and  few  districts  in  the  suburbs  where 
a  branch  of  the  London  &  County  Bank  is  not  to 
be  found.  And  when  one  is  wandering  through 
a  strange  town  it  is  not  a  matter  of  much  difficulty 
to  distinguish  which  is  the  bank,  since  the  board  of 
the  London  &  County  make  a  point  of  having  their 
buildings  built  both  for  utility  and  effect.  There  is 
nothing  gaudy  about  them  :  everything  looks,  and  is, 
good,  solid,  substantial.  The  buildings  are  an  orna- 
ment  to   the   district   in   which   they   are   erected. 

With  regard  to  the  capital,  which  in  1837  amounted 
to  £23,720,  this  important  item  has  been  frequently 
increased.  By  1849,  perhaps  by  the  payments  on 
shares  allotted,  it  stood  at  £200,000.  In  1867  this 
item  was  represented  by  £500,000.  Four  years  later 
the    bank    issued    6,000    new    shares,    and    in    1866, 


a  further  issue  of  12,500  shares  was  made.  In  1883, 
the  paid-up  capital  amounted  to  ii2,000,000,  at  which 
figure  it  has  since  remained.  Daring  the  whole 
period  of  its  existence  a  very  careful  eye  has  been 
kept  on  the  reserve  fund,  which  was  gradually  in- 
creased, till  in  1855  it  reached  more  than  £100,000 ; 
but  by  1864,  by  steady  accretions,  this  very  impor- 
tant total  stood  at  £240,675.  When,  as  already  stated, 
the  capital  of  the  bank  was  incrsased  in  1869  to 
£1,000,000,  the  reserve  fund  was  raised  to  £500,000, 
and,  when  the  capital  amounted  to  £2,000,000,  the 
reserve  fund  was  made  up  to  half  that  amount. 
Whenever  new  capital  was  issued  at  a  premium  the 
reserve  fund  benefitted  by  the  premium.  Not  content 
with  this,  for  a  long  time  past  the  directors  have 
adopted  a  very  wise  policy  —  whenever  the  profits 
permitted  they  have  allocated  to  the  reserve  fund 
substantial  amounts,  till  to-day  it  is  represented  by 
no  less   than   £1,850,000. 

And  here  we  would  remark  that  in  addition  to 
increasing  the  reserve  fund  the  directors  have  con- 
sistently written  down  the  value  of  their  investments. 
Whether  they  set  the  example  to  or  followed  the 
other  banks   we   are    not    in    a    position    to    say,   but 


that    the    plan    is    aa    excellent    one    is    absolutely 

Looking  at  the  last  published  balance-sheet  again 
for  a  moment,  we  have  no  hesitation  in  saying  that, 
taken  at  current  market  prices,  the  securities  held  as 
investments  would  not  only  realize  the  figure  at 
which  they  are  set  down,  but  leave  a  surplus  which 
would  form  a  substantial  second  reserve  fund.  The 
same  may  be  said  with  regard  to  the  premises,  which 
appear  on  the  balance-sheet  of  the  81st  December  last 
as  £784,207.  Anyone  connected  or  acquainted  with 
London  who  knows  the  head  office  of  the  County — 
apart  from  its  adjuncts — is  perfectly  well  aware  that 
that  site  alone  is  worth  quite,  if  not  more,  than 
that  amount.  Then,  too,  it  must  not  be  forgotten 
that  above  and  beyond  the  Lombard  Street  premises 
the  London  &  County  have  some  200  other  offices 
situated  in  all  parts  of  the  southern  district  of 
England.  The  value  of  these  alone  must  be  enor- 
mous, and  yet  we,  the  public,  are  informed  by  the 
printed  statement  of  figures  "Bank  Premises  in 
London  and  Country,  with  Fixtures,  Fittings,  &c., 
JB784,207 "  1  Here  again  the  bank  holds  a  splendid 
third   reserve   fund. 


Carefully  directed,   splendidly   organised,   remarkably 

well    managed,   the   London   &    County   has    made    its 

mark  on  the  pages   of  banking  history,   and   there  is 

no  doubt   that   for  many  a  long  day  to  come   it   will 

continue  to  hold  the  proud  position   of  being  one  of 

the  leading  banks  in    the    United  Kingdom,   and  one 

of    those  most  respected  in   the   civilized  world.     The 

balance-sheet,     as     below,     for     the     half-year     ended 

81st  December,    1904,   will   speak  for  itself: — 

Balanob-Shbbt    of    the    London   &   County  Banking  Compant, 

3l8T  December,   1904. 

Dr.  £  8.   d,        £  8.    d. 

To  Capital  subscribed  £8,000,000 

,,  Beserve  Fund 

,,  Due  by  the  Bank  on  Current 
Accounts,  on  Deposit  Ac- 
counts, with  Interest  ac- 
crued,  Circular  Notes,  &c. 

,,  Liabilities  on  Acceptances, 
covered  by  Cash,  or  Securi* 
ties  or  Bankers'  Guarantees 

,,  Rebate  on  Bills  not  due, 
carried  to  next  Account... 

,,  Net  Profit  for  the  half-year, 
after  making  provision  for 
Bad    and    Doubtful    Debts 

,,  Transferred  to  Premises' 

,,  Carried  to  Reserve  Fund     ... 

,,  Profit     and     Loss     Balance 
brought  from  last  Account 

2,000,000  0 
1,350,000  0 


44,394,484  11 


1,766,740  5 


27,434  10 


















—   266,391  1 


£49,805,050  8 



Cr.  £  8.   d.        £  s.    d. 

By  Cash  at  the  Head  Offtce  and 
Branches,  and  with  Bank 
of  England 8,009,826    9    9 

,,  Loans  at  Call  and  at  Notice, 

covered  by  Securities       ...     3,212,419  16    5 

,,        Investments,  viz.  : — 

,,  Consols  registered  and  in 
Certificates,  New  2^  per 
Cents.,  and  National  War 
Loan  (£6,894,491  Ts.  lid., 
of  which  £365,150  Os.  Od. 
Consols  is  lodged  for  Public 
Accounts)  ;  Canada  4  per 
Cent.  Bonds,  and  Egyptian 
3  per  Cent.  Bonds,  Guaran- 
teed by  the  British  Govern- 
ment   6,665,136  18    9 

,,  India  Government  Stock  and 
India  Government  Guaran- 
teed Kailway  Stocks  and 
Debentures 1,023,238  18    8 

,,  Metropolitan  and  other  Cor- 
poration Stocks,  Debenture 
Bonds,  English  Eailway 
Debenture  Stock  and  Colo- 
nial Bonds 1,694,882    8    5 

„  Other  Securities       13,194  13    5 

-11,222,246    6 

9,396,452  19 

„  Discounted  Bills  Current  ...     8,835,329    2  11 
J,  Advances    to    Customers   at 

the  Head  Office  and  Branches  17,800,073  19    3 

: 26,635,403    2 

,,  Liabilities  of  Customers  for 
Drafts  accepted  by  the  Bank 
(as  per  Contra)        1,766,740    5 

,,  Bank  Premises  in  London 
and  Country,  with  Fixtures 
and  Fittings 784,207  15 

£49,805,050    8    5 



The  London  &  South- Western  Bank. 

This  bank  is  one  whose  history  is  of  peculiar  interest 
since  its  progress  has  been  due  solely  and  entirely  to 
a  steady  increase  of  business,  and  the  growth  of  its 
figures  has  been  due  absolutely  to  public  appreciation, 
and  by  no  means  to  amalgamations  or  absorptions. 
It  is,  as  the  name  implies,  a  bank  catering  for  London 
and  the  south-west.  Like  the  London  &  County,  the 
National  Provincial,  and  the  London  &  Provincial,  the 
South-Western  has  watched  the  needs  of  the  suburbs 
of  the  metropolis  and  done  all  that  lay  in  its  power 
to  supply  them.  Its  efforts  have  been  thoroughly 
appreciated,  the  fine  buildings  erected  are  ornaments 
to  the  various  districts,  the  officers  employed  are 
always  courteous  and  obliging,  the  reports  issued  half- 
yearly  are  uniformly  satisfactory,  the  audited  balance- 
sheets  shew  a  continuous  progress,  its  reputation  is 
increasing  year  by  year,  the  directors  and  managers 
are  ever  on  the  alert  for  new  opportunities  of  extend- 
ing their  business,    shareholders    and  customers    alike 


are  more  than  satisfied  with  the  manner  in  which  the 
busmess  of  the  bank  is  conducted,  not  only  at  the 
head  ofl&ce,  but  also  at  every  one  of  the  branches — 
no  matter  how  small  they  may  be  ;  so  it  is  fair  to 
assume  that  the  bank  has  before  it  a  long  career  of 
honourable  progress   and  success. 

Such  in  a  few  words  is  a  synopsis  of  the  history 
of  the  London  &  South-Western  Bank.  No  insti- 
tution in  the  country  has  more  carefully  disseminated 
its  influence  than  has  the  South-Western. 

The  institution  was  established  in  1862,  and  at  that 
date  there  was  no  bank  on  the  one  side  of  the  Thames 
from  the  '*  Elephant  and  Castle"  to  Croydon,  and  on 
the  other  from  New  Road  (now  Euston  Road)  to 
Watford  and  St.  Albans.  The  South-Western  can  un- 
questionably claim  to  be  the  pioneers  of  suburban 
banking,  and  the  fact  that  so  many  of  the  large  banks 
have  since  followed  the  example  thus  set  shows  that 
the  principle  was  a  sound  one,  worthy  of  imitation. 
Take  all  the  suburbs  of  London,  even  the  compara- 
tively new  ones,  and  if  there  be  any  banking  accom- 
modation you  are  pretty  well  sure  to  see  the  London  & 
South-Western  on  the  scene.  The  management  have 
all  along  exercised  a  great  amount  of  foresight :   they 


have  not  waited  till  a  new  district  was  fully  deve- 
loped, but  they  have  gauged  the  probabilities  and 
opened  a  branch,  so  that  as  the  district  grew  the  bank 
could  grow  with  it.  Possibly,  in  the  first  instance 
there  might  not  be  anything  like  sufficient  business  to 
"keep"  the  branch,  but  the  directors  would  be  assured 
that  the  profits  in  the  near  future  would  more  than 
recompense  them  for  the  original  outlay,  and  we  feel 
confident  that  in  every  instance  their  expectations  have 
been  amply  realised.  At  the  end  of  the  year  1903 
the  bank  had  no  less  than  119  branches  in  London 
and  the  suburbs,  and  25  in  the  country,  in  addition 
to    which   there  were  also  five  sub-branches. 

As  already  stated  the  bank  was  founded  in  1862, 
but  business  was  not  started  till  1st  July  of  the  follow- 
ing year,  the  head  office  being  established  in  Regent 
Street.  Shortly  afterwards  branches  were  opened  in 
Camden  Town  and  Bristol.  In  1865  the  head  office 
was  removed  to  29  Lombard  Street,  and  in  1871  to 
7  Fenchurch  Street.  In  1888  a  site  was  procured 
on  the  opposite  side  of  the  street,  and  the  present 
magnificent  building  was  erected,  with  the  main 
entrance  in  Fenchurch  Street,  but  a  second,  minor 
entrance    in    GracecHurch   Street.      The    present    head 

office  is  splendidly  fitted  up,  and  commensurate,  as  it 
should  be,  with  the  importance  of  the  business  of  the 
bank.  While  speaking  of  the  head  office  we  would 
repeat  our  previous  statement  that  the  bank  now 
possesses  considerably  more  than  160  branches — some 
freehold,  some  leasehold — and  in  the  balance-sheet  for 
31st  December  last  we  find  the  item,  *•  Bank  free- 
hold and  leasehold  premises,  furniture  and  fittings, 
^6524,637  14s.  4d."  There  can  be  no  question  that 
the  large  number  of  splendid  buildings  owned  by  the 
South- Western,  occupying,  as  most  of  them  do,  most, 
prominent  positions,  are  worth,  in  the  aggregate,  much 
more  than  the  amount  which  appears  in  the  published 
statement.  And  when  one  adds  the  important  position 
occupied  by  the  head  office,  and  the  great  intrinsic 
value  of  the  site,  one  is  driven  to  the  conclusion 
that  apart  entirely  from  the  amount  specified  as 
standing  to  the  credit  of  the  reserve  fund,  there  is 
held  a  very  large  and  very  substantial  second  reserve 
in  the  difference  between  the  published  and  hammer 
price  of  the   buildings   and  furniture. 

The  paid-up  capital  of  the  bank  when  the  first 
balance-sheet  was  published  was  £58,125,  but  this  was 
from    time    to    time    increased    by    the    issue   of    new 


shares,  until  in  1877  it  stood  at  £200,000,  divided 
into  10,000  shares  of  £100  each,  with  £20  paid.  The 
heavy  remaining  liabiHty  seemed  to  debar  many  would- 
be  investors  from  taking  up  an  interest  in  the  com- 
pany. So  an  extraordinary  meeting  of  the  share- 
holders was  called  and  the  matter  placed  clearly  be- 
fore them — this  was  in  May,  1883— when  it  was 
unanimously  resolved  to  divide  each  share  of  £100 
with  £20  paid  into  two  shares  of  £50,  with  £10 
paid,  it  being  understood  that  calls  up  to  £10  per 
share  would  be  made,  as  the  business  of  the  bank 
required  increased  capital.  Thns  the  uncalled  capital 
was  reduced  from  four  to  two  and  a  half  times  the 
amount  paid  up  on  each  share.  Four  calls,  each  of 
£2  10s.,  were  made  in  1883,  1884,  1888,  1889,  in- 
creasing the  paid-up  capital  to  £400,000.  Next  year 
it  was  decided  to  increase  the  subscribed  capital,  and 
10,000  new  £50  shares  (£20  paid)  were  issued  at  a 
premium  of  £12  10s.  per  share.  This  brought  the 
total  paid-up  capital  to  £600,000,  and  the  premiums 
thus  received  added  a  handsome  amount  to  the  reserve 
fund.  Since  that  date,  as  the  exigencies  of  business 
demanded,  fresh  capital  has  been  issued  at  varying 
premiums,   and   the  latter  have   invariably  been  added 


to  the  reserve  fund,  until  now  the  authorised  capital 
of  the  bank  is  £8,000,000,  the  subscribed  ^62,500,000, 
and  the  paid-up  £975,000. 

In  the  previous  paragraph  we  have  alluded  to  the 
reserve  fund.  The  bank  was  opened  in  July,  1863, 
and  the  following  year  by  the  issue  of  new  and  un- 
allotted shares,  a  profit  of  £14,500  was  made,  and 
this  was  immediately  assigned  by  the  board  as  the 
nucleus  of  a  reserve  fund.  The  plan  was  an  excel- 
lent one,  and  the  fund,  once  started,  rapidly  grew, 
year  by  year,  substantial  sums  being  allocated  to  it 
from  the  current  profits.  In  1890,  10,000  new  shares 
were  issued  at  a  premium  of  £12  10s.  per  share: 
these  were  allotted  to  the  then  shareholders,  the 
market  price  of  the  shares  being  at  that  time  89- 
40.  And  so  on.  Each  time  the  bank  subsequently 
issued  new  capital  the  reserve  fund  benefitted  by 
the  transaction,  as  with  its  increasing  reputation  the 
bank  could  command  a  higher  price  in  the  market. 
Again,  we  would  repeat  that  the  issue  of  new  shares 
has  been  purely  and  solely  for  the  purposes  of  an 
ever  enlarging  business,  a  constantly  increasing  demand 
for  new  branches— but  in  no  instance  for  the  purpose 
of  buying   up   some   other    banking  institution.      With 


this    regular  augmentation  of    the   reserve   fund,    that 
important  item  now  reaches  the  very  substantial  total 
of  £950,000.     While  writing  on  this  subject,  we  would 
call   attention    to    another    very    important    factor    in 
the  consideration  and  the   stability  of  the  bank.     We 
allude  to  the  "Investments."     These  are  all  of  a  very 
high    character    and    appear    on    the    balance-sheet    at 
£3,872,344   15s.   4d.      From  time  to    time  sums — fre- 
quently large   sums    of    money,   have    been    set    aside 
from  the  profits  of  the  bank  to  write  down  the  figure 
at  which  these  investments    stood  in  the  books,  just 
in  the  same  way  as  every  half-year  the  directors  have 
set  and  do  set  aside  certain  sums  to  decrease  the  book 
value  of  the  '*  bank  premises."     A  year  ago,  as  every- 
one knows,   consols,  the  premier  security,  fell  heavily, 
and  most  of  the  banks  in  the  country  decided  to  write 
their  holding  down  to    somewhat    nearer    the   market 
price.      For   some  time  past  the  consols  held  by  the 
London    &    South- Western    Bank    had    been    recorded 
at  a  very  safe   figure,  but  realizing   the  importance  of 
the   situation,   the   directors    made  in   their    report   for 
81st   December,   1903,   the  following   announcement: — 
"from      this      amount     the     directors     have     applied 
£44,782  lis.   6d.  in  writing  down  reserve  fund  consols 
to  £85  per   cent.     .     .     ." 

With  other  stocks  also  written  down  it  is  easy  to 
see  that  here  again  the  bank  has  another  substantial 
reserve  fund,  the  strength  of  which  can  only  be  dis- 
covered by  calculation,  and  by  information  as  to  the 
figure  at  which  the  investments  other  than  consols 
appear  on  the  published  statement. 

We  have  not  a  copy  of  the  first  published  balance- 
sheet  before  us,  but  we  learn  that  in  it  the  total  of  the 
current  and  deposit  accounts  appeared  as  £152,618 — but 
these  figures  represented  only  the  work  of  six  months. 
Five  years  later  the  bank's  liability  to  the  public 
exceeded  half-a-million  pounds  sterling.  "  Progress  " 
was  the  word  of  the  day,  and  so,  in  1875  we  find 
that  the  bank  held  in  current  and  deposit  accounts 
more  than  a  million  pounds.  Seven  years  later  the 
total  of  this  most  important  item  stood  at  £2,143,000. 
By  1886  the  initial  figure  had  been  changed  from 
2  to  8,  and  in  1889  the  directors  with  pardonable 
pride  could  note  a  further  alteration — the  3  being 
changed  to  4,  and  the  deposits  standing  at  £4,100,194. 
From  that  time  the  balance-sheets  have  invariably 
shown  a  steady  and  material  increase,  until  to-day 
the  liability  of  the  bank  on  current  and  deposit 
accounts  alone  is  represented  by  the  large  sum  of 
nearly  £14,000,000— and  the  star  of  the  bank  is  still 


in  the  ascendant,  and,  under  the  same  skilful  direction 
and  management  which  has  characterised  its  upward 
flight  in  the  past,  will  continue  so  for  many  a 
generation  to  come — provided  only  it  can  steer  clear 
of  the  amalgamating  terrors  so  current  just  now. 

With  such  a  heavy  liability  to  the  public  the  thought- 
ful person  at  once  asks  **  in  what  position  does  the 
bank  stand  to  discharge  it  in  cases  of  need  ?"  A 
glance  at  the  balance-sheet  which  we  reproduce  below 

will  show: — 

Current  and  Deposit  accounts  ...  Jei3,623,000 

Cash  in  hand  and  at  Bank  ...  ^61,778,000 

Ditto  at  Call  971,000 

Ditto  Investments 8,872,000 

That  is  to  say,  the  cash  in  hand  and  at  the  Bank 
of  England  was  equivalent  to  13*05  per  cent,  of  the 
liability,  the  money  at  call  to  7*1,  and  the  invest- 
ments to  28*4:  —  together  48*5  per  cent.  —  money 
immediately  procurable   and  available. 

In  1881  the  bank  established  an  officers*  guarantee 
and  provident  fund,  the  directors  undertaking  to  pro- 
vide sufficient  funds  to  pay  compound  interest  at  5 
per  cent,  on  the  balance  of   the   amounts  paid  in  by 


the  members  of  the  staff,  who  contributed  at  the  rate 
of  5  per  cent,  on  their  salaries.  In  this  particular 
various  alterations  have  been  made,  and  the  staff  now 
enjoy  a  provident,  a  pension,  a  guarantee  and  a  sav- 
ings' bank  fund,  all  of  which  are  flourishing  in 
a  remarkable   degree. 

Before  giving  the  copy  of  the  last  balance-sheet,  it 
may  be  of  interest  to  state  that  the  premises,  No.  7 
Fenchurch  Street,  at  one  time  the  head  office  of  the 
bank,  were  previously  occupied  by  Messrs.  Hankey  &  Co., 
and  the  following  story,  although  not  new,  will  bear 
repetition  in  this  connection :  "  Late  one  evening  in 
1720,  a  carriage  drove  up  to  the  door  of  Messrs. 
Hankey  &  Co.'s  banking-house  in  Fenchurch  Street. 
A  demand  to  see  a  partner  was  responded  to,  and 
when  the  visitor  had  satisfied  himself  that  he  was  in 
the  presence  of  one  of  the  firm,  he  handed  him 
a  packet  carefully  sealed,  with  a  request  that  it 
might  be  placed  aside  till  he  called  for  it.  The 
request  was  singular,  but  it  was  granted.  A  few 
days  passed — a  few  weeks — a  few  months — but  the 
stranger  did  not  make  his  appearance :  and  after 
the  third  year  had  elapsed,  the  partners  agreed  to 
open  the  mysterious  parcel  in  each  other's  presence. 
To  their  surprise  it  contained  £30,000  in   bank  notes. 


with  a  letter,  which  stated  that  the  money  was 
obtained  in  the  South  Sea  Bubble.  Directions  were 
added  as  to  its  investment,  and  the  interest,  the  letter 
said,  was  to  be  devoted  to  the  relief  of  the  poor." 

Statembkt  of  Accounts  op  the  London  &  South- Western  Bank, 

Balance-Shbbt — 3l8T  Decembeb,  1904. 

Br.  £         s.    d.  £        s.    d. 

Current  and  Deposit  Accounts  13,165,741  17  10 

Other  Liabilities  and  Credit 
Accounts,  including  Out- 
standing Advices,  Letters  of 

Credit,  and  Circular  Notes... 

457,885  12    4 

13,623,627  10 
305  14 


Capital  Subscribed  :— 

50,000  Shares  at  JB50.. 


Paid-up  :— 40,000  Shares  £20  per  Share, 
and  10,000  New  Shares  £17  lOs.  per 
Share,  making  a  total  of        

975,000    0 


Reserve  Fund 

(Invested  Id  Consols 

as  per  Contra) 

950,000    0 


Rebate  on  Bnis  not  due 

6,059  14 


Profit  and  Loss  : — 
Balance    brought    from    last 

£        s.    d. 
30,102  13    2 

Net  profit  for  the  half-year 
ended  31st  December,  1903, 
after  adding  £2,500  to  StafE 
Retirement  and  Benevolent 
Fund 88,451  11    9 

118,554    4  11 

Writing  down  Reserve  Fund 
Local  Loans  Stock  to    £ 
percent 3,159  17  11 

115,396    7    0 
£15.670,389    5    6 


Cr.  £        8.    d.  £        8.    d. 

Cash  in  hand  and  at  Bank  of 
England        1,778,508    9    6 

Money    at    Call,    and    Short 
Notice 971,465    0    0 

—    2,749,973    9    6 

Investments  : — 

Consols  and  Securities  of,  or 
guaranteed  by,  the  British 
Grovemment  (of  which 
£343,500  is  lodged  for 
Public  Accounts) 1,170,584  18  11 

Reserve  Eund : — 

Consols     (2  J    per    cent.) 

£882,352  18s.  lOd.  @  £85        750,000    0    0 

Local    Loans   (3  per    cent.) 

£210,526  6s.  4d.  ©  £95    ...        200,000    0    0 

2,120,584  16  11 
Indian  Railway  Guaran- 
teed, Metropolitan  and 
English  Corporation,  Bank 
of  England  and  British 
Colonial  Government  Stocks  1,443,971    0    5 

British  Railway  Stocks  and 

other  Securities     307,788  18    0 

3,872,344  15    4 

Bills  discounted :  — 

(a)  Three  Months  and  under        815,412  12    7 

(6)  Exceeding  Three  Months        106,166    5    5 

921,578  18    0 

Loans  and  Advances 7,317,261    8    8 

Liability  of  Customers  for  Ac- 
ceptances, as  per  Contra   ...  305  14    3 

Bank  Freehold  and  Leasehold 
Premises,  Furniture  and 
Fittings         524,637  14    4 

Other  Assets,  including  Out- 
standing Advices,  Freehold 
and  Leasehold  Properties, 
and  Stamps 284,287    5    5 

£15,670,389    5    6 



The  London  &  Westminster  Bank. 

This  was  the  first  joint-stock  bank  started  in  London, 
and  though  its  position  is  one  that  could  well  be 
envied  by  any  institution  in  the  United  Kingdom, 
there  has  been  nothing  particularly  exciting  in  the 
whole  of  its  long  history.  It  was  founded  on  the 
10th  March,  1834,  with  a  paid-up  capital  of  £60,000. 
By  the  original  prospectus  the  capital  was  fixed  at  ten 
million  pounds,  divided  into  100,000  shares  of  £100 
each,  "  in  order  that  the  mercantile  and  trading 
community,  and  the  public  in  general,  may,  by  this 
extensive  distribution  of  shares,  acquire  an  interest 
in  the  prosperity  of  the  establishment  and  partici- 
pate in  its  advantages."  It  appears  that,  in  spite  of 
this  inducement,  the  shares  went  off  slowly.  The 
venture  was  on  quite  new  lines,  and  the  result — 
failure  or  success — was  entirely  problematical.  When 
the   business    was    started    under    the    management   of 


Mr.  James  Wm.  Gilbart,  at  88  Throgmorton  Street, 
there  were  but  10,000  shares  taken  up.  This,  how- 
ever, did  not  discourage  the  founders;  they  had 
started  a  business  which  they  intended  should  "pay," 
and  they  were  determined  to  make  it  do  so.  They 
had  not  long  to  wait.  The  same  year  (1834)  a  bill 
was  brought  into  Parliament  to  authorise  the  Lon- 
don &  Westminster  Bank  to  sue,  and  be-  sued,  in 
the  names  of  their  public  officers,  in  the  same  way 
as  those  banks  whose  offices  were  more  than  sixty- 
five  miles  from  London.  Though  this  bill  passed 
through  the  Commons  it  was  rejected  by  the  Lords, 
and  consequently  the  bank  adopted  the  plan  of  suing 
or  being   sued  by   trustees. 

But  although  the  bank  had  surmounted  one  diffi- 
culty others  presented  themselves,  as  is  always  the 
case  with  pioneers.  The  institution  had  a  very  up-hill 
battle  to  fight  against  the  prejudices  of  the  old  estab- 
lished private  bankers,  who  till  then  had  enjoyed 
a  monopoly  of  the  banking  business  of  the  metropolis, 
but,  worst  of  all,  there  was  the  envenomed  jealousy 
of  the  Old  Lady  of  Threadneedle  Street,  It  was  not 
long  before  she  showed  her  teeth.  Being  probably 
ill    at    ease    with   a   new  rival,  who    promised    to    be 


a  very  formidable  one,  she,  in  the  early  part  of 
1885,  commenced  proceedings  to  prevent  the  Lon- 
don &  Westminster  from  accepting  bills  drawn  at  less 
than  six  months  after  date.  Two  years  later  the 
Master  of  the  Rolls  granted  the  necessary  injunction, 
but  the  efifect  of  this  judicial  mandate  was  speedily 
neutralized,  and  the  Bank  of  England  thwarted,  by 
the  action  of  the  country  bankers,  who  immediately 
commenced  drawing  on  the  London  &  Westminster 
without   acceptance. 

On  the  same  day  that  the  bank  commenced  opera- 
tions in  the  city  a  branch  was  opened  in  Waterloo 
Place,  Pall  Mall,  as  the  Westminster  branch,  and 
this  was  removed  subsequently  to  St.  James's  Square. 
In  January,  1836,  branches  were  opened  at  213  Hol- 
born  and  87  Whitechapel,  and  in  February,  at  Wel- 
lington Street,  Southwark.  In  June  of  the  same  year 
the  directors  decided  to  open  a  branch  establishment 
in  Oxford  Street,  to  subsequently  remove  it  to  Strat- 
ford Place  as  their  Marylebone  branch.  Thus  it  will 
be  seen  that  the  idea  of  the  board  was  to  cater  for 
London  generally,  and  it  was  speedily  recognised  by 
the  then  leading  bankers  that  they  must  look  carefully 
to    their    laurels;    the    old    jog-trot    days    had    passed 


away,  and  a  new  era  had  commenced.  Very  quickly 
the  bank  became  remarkably  popular,  and  then  atten- 
tion was  directed  to  other  districts  where  accommo- 
dation was  inadequate,  or  entirely  absent.  But  it 
was  not  until  1855  that  any  decided  move  was 
made.  In  that  year  the  well-known  firm  of  Strachan, 
Paul  &  Bates  failed,  and  this  opportunity  was  seized 
by  the  London  &  Westminster  to  open  their  Temple 
Bar  branch.  It  was  in  1863  that  the  London  &  Mid- 
dlesex bank  stopped  payment,  and  the  directors,  always 
on  the  alert  for  strengthening  their  business,  founded 
the  Lambeth  branch.  When  Jones,  Loyd  &  Co.,  an 
old  established  firm  of  private  bankers,  and  neigh- 
bours of  the  London  &  Westminster,  suspended  pay- 
ment in  1863,  the  latter  bought  their  business  and 
their  premises.  In  1881,  a  branch  was  opened  in 
Brompton  Square,  South  Kensington;  in  1884,  in 
Victoria  Street,  Westminster;  in  1886,  in  Westbourne 
Grove,  Bayswater,  and  one  at  Islington ;  in  1887, 
the  Holborn  Circus  branch  was  started,  and  the 
Tottenham  Court  Road  branch  was  opened.  In  1890 
the  bank  was  represented  at  Hampstead  and  Oxford 
Street,  while  in  the  following  year  business  was  com- 
menced in  High   Street,   Kensington. 


Since  then  when  favourable  opportunities  arose  the 
board  have  carefully  and  wisely  opened  branch  estab- 
lishments in  all  parts  of  the  metropolis  and  the  suburbs, 
and  is  now  represented  in    the   following   districts : — 

Balham   Hill. 




Bow  Eoad. 




Eastern  (Whitechapel). 



Heme   Hill. 

Holborn   Circus. 






Marylebone  (Stratford  Place) 

Marylebone   (West). 

Mincing  Lane. 


Old   Street. 

Oxford   Street. 

St.   Mary   Axe. 

St.   Paul's. 

Shepherd's  Bush. 

South  Kensington. 


Streatham  Hill. 

Temple  Bar. 

Tottenham  Court  Road. 

Victoria  Street,   S.W. 

Wood  Street,  E.C. 

With  an   establishment    that    has    had    a    continued 

career  of  progress  for  a  large  number  of  years  it  is 

always  of  interest  to  look  back  on  the  history  of  its 

early   days.      In    the    first    report   issued,   in   1884,   by 


the  London  &  Westminster   the   following  paragraphs 
occur : — 

"The  opposition  of  the  private  hankers  was  mani- 
fested at  an  early  period  by  their  refusal  to  permit 
any  clerk  to  attend  at  the  Clearing  House  on  behalf 
of  this  bank.  The  Clearing  House  has  been  in  exis- 
tence for  upwards  of  sixty  years,  and  although  founded 
m  the  first  instance  for  the  accommodation  of  such 
London  bankers  as  chose  to  avail  themselves  of  it, 
yet  it  has  become  entwined  with  the  mode  of  settling 
accounts  in  several  branches  of  business,  and  is,  for 
all  practical  purposes,  a  public  institution.  The 
opposition  of  the  Bank  of  England  began  by  their 
refusal  to  grant  to  this  company  the  common  con- 
venience of  a  drawing  account,  a  convenience  granted 
as  a  matter  of  course  to  every  respectable  firm  who 
may  choose  to  apply  for  it. 

*  *  *  -x-  *  *  * 

**The  directors  congratulate  the  proprietors  that, 
notwithstanding  all  this  opposition,  they  have  not 
only  been  able  to  stem  the  torrent  which,  it  must 
be  evident,  arose  from  private  and  not  public  con- 
siderations, but  they  have  seen  from  the  progressive 
advancement    of    business,  that  [  they    occupy    a    more 


favourable  position  in  public  opinion ;  and  whether 
the  ordinary  power  to  sue  and  be  sued  be  granted 
or  not,  whether  the  courtesies  and  facilities  usual 
amongst  all  competitors  be  reciprocated  or  not,  they 
entertain  no  doubt  of  the  prosperity  of  this  establish- 
ment, founded,  as  it  is,  upon  liberal  and  broad 
principles,   and   upon   a  broad   basis   of   security." 

Thus  the  directors  in  1834.  How  amply  their 
anticipations  have  been  realised  the  continued  pros- 
perity of  the  bank  amply  proves.  We  are  quite  sure 
that  could  the  founders  of  the  institution  glance  at 
the  last  balance-sheet  they  would  be  absolutely 
astounded  at  the  figures  there  given.  Little  did 
Mr.  J.  W.  Gilbart  dream  that  he  was  laying  the 
foundation  of  so  mighty  a  financial  system  when  he 
first  advocated  the  opening  of  a  joint-stock  bank  in 
London.  He  had  grasped  a  great  principle  which  has 
enormously  developed,  viz.,  that  the  aggregate  of 
a  number  of  small  balances  may  be  equivalent  to 
a  few  large  ones.  The  joint-stock  system  of  banking 
enables  the  poor  as  well  as  the  rich  man  to  "  keep 
his  banker,"  and  it  is  only  necessary  to  look  at  the 
amounts  of  the  cheques  which  daily  pass  through  the 
House   to   thoroughly   realise   this. 

or  Twt 
VNIYERSn  :  j 


And  now  let   us  look  at   the  first   balance-sheet  of 
the  London   &  Westminster. 

A  Statement  of  the  Affairs  of  the  Bank, 
31st  December,  1834. 
Dr.  £        8.   d. 

Due  to  the  public  in  Lodgments,  and  Interest 

on  Deposit  Accounts 180,380    9  10 

Due  to  proprietors  for  Paid-up   Capital        ...        182,255    0    0 
Balance  in  favour  of  Bank        3,540    6    6 

£366,175  16    4 

Cr.  £        s.   d. 

Due  to  the  Bank  on  account  of  Investment 
in  Government  Securities,  Bills  Discounted, 
&c„   and  Cash  in  hand       355,540    3    6 

Preliminary  Expenses        10,635  12  10 

£366,175  16    4 

It  will  be  seen  that  despite  the  difficulties  to  be 
encountered,  the  bank  did  very  well  during  its  first 
year  of  existence.  The  figures  shown  in  the  balance- 
sheet  of  to-day — seventy  years  later — show  a  striking 
contrast,  the  assets  totalling  more  than  thirty-two 
million  pounds  as  compared  with  three  hundred  and 
sixty-six  thousand  pounds  in  1884  ;  while  the  amount 
"due  to  proprietors"  for  paid-up  capital  has  increased 
from  £182,255  to  £2,800,000,  with,  in  addition,  a 
reserve   fund   of   £1,400,000. 


Similarly  the  profit    and    loss   accounts   are   equally 
interesting.     Thus  for   1884   this   appeared  : — 

Dr.  £     8.  d. 

Total  Current  Expenditure  from  10th  March  to 

3l8t  December      4,377    4    2 

Interest  due  to  the  public  on  Deposit  Eeceipts  521    1    8 

Balance  in  favour  of  the  Bank 3,540    6    6 

ig8,438  12    4 

Cr.  £      s.  d. 

Balance  of  Interest  Account  8,438  12    4 

That    for    1904,    June  to  December  only,   is    some- 
what different  1 

Dr.  £       8.  d. 

To  Total  Expenditure  of  the  thirty-six  Estab- 
ments,  including  Rent,  Taxes,  Salaries, 
Pension  Fund,  Life  Insurance,  Station- 
ery,  &c 141,122  19  10 

,,  Payment  of  the  Dividend  now  declared, 
at  the  rate  of  6^  per  Cent,  for  the  half- 
year  on  the    Paid-up    Capital,    £2,800,000        182,000    0    0 

,,   Balance    of    undivided    Profit    carried     to 

next  Account 18,714  15  11 

£341,837  1^ 

Cr.  £        8,   d. 

By  Balance  of  undivided  Profit,   31st  Decem- 
ber,  1902 13,944  18    3 

,,  Gross  Profits  of  the  last  half-year,  after 
appropriating  £3,000  towards  the  Build- 
ings of  the  Bank,  paying  the  Income-tax, 
and  making  provision  for  all  bad  and 
doubtful   Debts 327,892  17    6 

£341,837  15    9 


One  of  the  principles  on  which  the  bank  has  been 
conducted  throughout  has  been  to  hold  in  cash  and 
immediately  convertible  securities  a  large  proportion 
of  the  amount  of  the  liability  to  the  public,  and 
this  may  be  one  of  the  reasons,  if  not  the  reason, 
of  its  great  success.  Thus  from  the  last  balance- 
sheet  we  see  that  the  current  and  deposit  accounts 
stood  at  £27,155,212,  and  against  this  large  total  the 
bank  held 

Cash  in  hand  and  at   Bank   of 

England      £4,322,262 

Money  at  Call  and  Short  Notice  6,254,350 

Government  and  other  Securities  4,737,000 

Together...         ..        £15,813,612 

The  paid-up  capital,  which  was  £182,255  in  1834, 
was  £597,255  in  1836,  and  had  reached  £800,000  in 
1842.  In  1849  it  stood  at  £1,000,000,  at  which 
jBgure  it  remained  until  1866,  when  new  shares  were 
issued,  which,  by  1869,  had  brought  the  paid-up 
capital  to  £2,000,000.  Further  shares  were  issued  in 
1880,  and  when  these  were  paid  the  capital  stood  at 
the  substantial  figure  of  £2,800,000,  at  which  it  has 
since  remained. 


The  reserve  fund,  which  was  j61,205  in  1884,  was 
steadily  increased  year  by  year  until  in  1867  it  stood 
at  £500,000.  Next  year,  by  the  addition  of  £600,000 
premium  on  the  issue  of  new  shares,  it  was  raised 
to  £1,000,000,  and  now,  by  various  additions,  it  has 
been   raised   to   £1,400,000. 

It  would  be  difficult  to  find  in  London  an  office 
where  the  staff  work  more  harmoniously  together. 
The  present  building  in  Lothbury,  which  has  fre- 
quently been  enlarged  and  altered,  is  a  veritable  hive 
of  industry.  The  business  of  the  bank  was  trans- 
ferred from  38  Throgmorton  Street  to  these  premises 
on  26th  December,   1888. 



The  London,  City  &  Midland  Bank. 

Tms  important  financial  institution,  like  Lloyds,  has 
a  most  interesting  history,  and  has  enjoyed  a  career 
of  steady  and  unimpeded  progress.  It  holds  one  of 
the  highest  positions  in  the  whole  of  the  banking 
world,  and  is  well-known  and  highly  thought  of  in 
every  portion  of  the  civilized  world.  Together  with 
Parr*s  and  Lloyds  it  is  responsible  for  the  absorption 
of  a  large  number  of  private  joint- stock   banks. 

The  bank  was  established  in  Birmingham  in  August, 
1886,  incorporated  in  1873,  and  registered  as  the  Bir- 
mingham &  Midland  Bank,  Limited,  in  1880.  The  first 
office  was  in  Union  Street,  Birmingham,  but  such  was 
the  success  which  attended  it,  and  so  rapidly  did  the 
business  flow  in,  that  it  was  soon  found  that  the 
accommodation  there  was  quite  incommensurate  with 
the  requirements.  Accordingly  the  directors  acquired 
a  site  in  New  Street,  on  which  they  erected  one  of 
the  most  palatial  banking  premises  to  be  found  in  the 


United  Kingdom,  This  building  was  opened  for  busi- 
ness in  1869,  and  even  to-day,  with  all  the  improve- 
ments which  have  been  effected  in  the  capital  of  the 
Black  Country,  it  still  remains  one  of  the  finest  and 
most  substantial. 

The  Birmingham  &  Midland  Bank  started  business 
in  one  office  only,  unlike  some  others  to  which  we 
have  already  referred  which  opened  a  head  office  and 
branch  offices  at  one  and  the  same  time.  No  branch 
was  opened  till  1851,  when  the  business  of 
Bate  &  Bobbins,  an  old  firm  of  private  bankers  at 
Stourbridge,  was  absorbed.  Shortly  afterwards,  the  pri-* 
vate  firm  of  Nicholls,  Baker  &  Crane,  of  Bewdley,  was 
acquired,  this  being  a  house  nearly  a  century  old  with 
a  splendid  connection.  In  1875  a  branch  was  opened 
at  Wednesbury,  and  seven  years  later  one  at  Moseley 
Eoad,  Birmingham.  This  was  really  the  commence- 
ment of  a  system  which  the  present  bank  has  ever 
since  assiduously  and  persistently  followed — the  opening 
of  branches  in  all  directions  in  every  part  of  the 
country.  This  institution,  perhaps  more  than  any 
other,  has  recognised  the  vast  importance  of  catering 
for  the  public  convenience,  that  the  small  man  has  aa 
much  right  to  expect  banking  facilities  as  the  big 
*  I 


merchant  or  financier.  Consequently,  it  has  opened 
up  branches  in  almost  every  part  of  England  and 
Wales,  not  even  overlooking  the  Channel  Islands. 
Given  the  necessity  for  a  branch  bank,  or  the  prob- 
ability of  one  opened  in  any  district  paying  and  the 
authorities  of  the  London  City  &  Midland  Bank 
immediately  make  the  necessary  arrangements. 

The  first  general  manager  was  Mr.  Charles  Geach, 
at  one  time  M.P.  for  Coventry.  He  having  been 
offered  a  seat  on  the  board,  retired  in  1847  in  favour 
of  Mr.  Henry  Edmunds,  who  also  was  made  a  director. 
His  successor  was  Mr.  Goode,  who  retired  on  a  pension 
after  forty-two  years'  service.  Next  came  Mr.  G.  F. 
Bolding,  who  in  1887  retired,  and  was  succeeded  by 
Mr.  J.  A.  Christie,  who  in  1871  had  entered  the  bank 
as  secretary.  Mr.  E.  H.  Holden,  one  of  the  best- 
known  gentleman  in  the  banking  world,  entered  the 
service  of  the  Birmingham  &  Midland  in  1881,  and 
six  years  later  was  appointed  assistant  manager.  In 
1891  he  was  appointed  joint  general  manager  with  Mr, 
Christie.  It  was  under  the  regime  of  these  two  gentle- 
men that  the  bank  forged  its  way  ahead  so  rapidly. 
Its  progress  was  phenomenal.  From  a  comparatively 
small   institution   it  has   grown   to  be  the  third  largest 


bank  in  the  country.  Mr.  Holden  was,  and  is,  inde- 
fatigable and  untiring  in  his  efforts.  All  his  interests 
and  engeries  are  centred  round  the  institution,  which 
he  must  almost  regard  as  a  foster  child. 

Some  idea  of  the  enormous  growth  of  this  bank  can 
be  gathered  from  a  glance  at  the  following  figures: — 

1836.  1904. 

Capital  paid-up...         £260,000         £3,000,000. 

The  first   published  balance-sheet  was  for  the    year 

1879.     Let  us  look  at  two  or  three  of  the  main  items 

there  recorded,  and  compare  them  with  those  for  1904. 

1879.  1904. 

Capital  paid-up ...         £800,000        £3,000,000 

Reserve  Fund     ...  210,000  8,000,000 

Deposits 2,750,000         47,672,000 

That  is  to  say,    in   some  twenty-five   years  alone   the 

liability  of  the   bank   to   the  public  has  increased   by 

nearly  seventeen   hundred  per   cent.      But   it  must   be 

remembered    that   as    the   liability  to    the    public    has 

increased   so   have    the   means   to    meet    that    liability. 

There    are    few,    if    any    of    the    clearing    banks    that 

can    show  a  higher  proportion    of   assets    to    deposits. 

This  will  be  seen  by  the  balance-sheet  we  give  below. 

Of  course  everyone  knows  that  the  major  'portion  of 

this  tremendous   fiugmentation  is  due   in  the  main  to 


amalgamations  and  absorptions,  and  in  this  depart- 
ment of  banking  work  the  Midland,  under  the  general- 
ship of  Mr.  Holden,  has  been  exceptionally  fortunate. 
Every  eligible  bank,  in  any  way  obtainable,  has  been 
swallowed  up.  In  1883  the  Union  Bank  of  Birming- 
ham, Limited,  was  taken  over,  and  soon  afterwards  the 
Coventry  Union  Bank,  the  Leamington,  Priors  &  War- 
wickshire Banking  Company,  and  the  Derby  Com- 
mercial Bank,  thus  strengthening  the  position  of  the 
bank  in  the  Midlands.  Then  an  important  move  was 
made,  by  the  absorption  in  1890  of  the  Leeds  &  County 
Bank,  and  the  Exchange  &  Discount  Bank  of  Leeds. 
This  established  the  Midland  firmly  in  Yorkshire,  as 
both  these  institutions  were  doing  a  large  business 
and   each  had  several  branches. 

All  this  time,  however,  Mr.  Holden  had  been  keeping 
his  eagle  eye  on  the  metropolis — the  Midland  must  not 
rest  till  it  had  a  London  office,  a  London  connection, 
and  a  seat  in  the  London  Bankers'  Clearing  House. 
Each  of  these  ends  were  attained  the  following  year 
when  it  was  announced  that  terms  of  amalgamation 
had  been  arranged  with  the  Central  Bank  of  London, 
Limited.  This  sound  little  institution  was  established 
in   1863,   and  at   the   time  of  the  absorption   had  ten 


branches,  all  radiating  from  the  head  office  in  Corn- 
hill.  But  what  was  far  more  important  it  had  the 
great  privilege  of  a  seat  in  *<  the  House."  The  head 
office  was  then  transferred  from  New  Street,  Birming- 
ham, to  Gornhill,  London,  the  title  of  the  bank  was 
altered  to  the  London  &  Midland  Bank,  Limited,  and 
Mr.  E.  H.  Holden  was  made  joint  general  manager 
with  Mr.  J.  A.  Christie.  Unquestionably  this  was  the 
most  important  step  the  bank  had  taken  up  to  that 
time.  It  was,  however,  only  the  prelude  of  what  was 
to  follow.  The  next  ten  years  saw  the  Midland  spread- 
ing like  an  octopus  all  over  the  kingdom.  Within 
about  a  month  after  the  absorption  of  the  Central  it 
was  officially  announced  the  business  of  the  very  old 
private  bank  of  Messrs.  Lacy,  Hartland  &  Co.,  of 
Bermondsey  and  West  Smithfield,  had  been  purchased. 
Thus  two  more  were  added  to  the  number  of  its 
London  branches. 

Then  attention  was  given  to  the  County  Palatine, 
where  the  bank  was  not  represented  at  all.  The 
following  year  the  opportunity  presented  itself,  and  the 
Manchester  Joint- Stock  Bank,  Limited,  with  twelve 
branches  in  and  around  the  city,  was  acquired. 


In  1898  the  Bank  of  Westmoreland,  with  branches 
at  Kendal,  Ambleside,  Kirkby- Stephen,  Sedbergh  and 
Bowness  was  secured.  From  1895  to  1897  the  follow- 
ing banks  were  taken  over :  the  Preston  Banking 
Company,  Limited,  the  Carlisle  City  &  District  Bank, 
Limited,  the  Channel  Islands  Bank,  Limited,  Hudders- 
field  Banking  Company,  Limited,  North-Western  Bank, 
Limited,  Oldham  Joint- Stock  Bank,  Limited. 

During  this  period  numerous  branches  and  sub- 
branches  were  opened,  especially  in  the  north  and 
south  of  England,  and  in  "Wales — the  bank  having  for 
many  years  been  very  strong  in  the  principality. 

In  1898  another  grand  coup  was  made,  the  financial 
world  being  startled  at  reading  one  morning  an  an- 
nouncement that  terms  of  amalgamation  had  been 
arranged  with  the  City  Bank,  Limited,  an  institution 
which  had  a  large  and  important  city  and  foreign 
connection,  and  numerous  branch  offices  in  London. 
Then  it  was  that  the  title  of  the  bank  was  altered 
to  the  London,  City  &  Midland  Bank,  Limited. 
Then,  too,  Mr.  E.  H.  Holden  was  appointed  managing 
director,  and  Mr.  J.  M.  Madders,  Mr.  S.  B.  Murray 
and    Mr.   D.   G.    H.    Pollock    joint    general    managers. 


The  head  office  was  transferred  at  the  same  time  from 
Cornhill  to  Threadneedle  Street. 

Since  then  the  Sheffield  Banking  Company,  Limited, 
has   been  taken  over. 

With  the  constant  increase  of  business,  and  with  the 
many  purchases,  amalgamations,  and  absorptions  the 
capital  of  the  bank  has  been  repeatedly  increased,  but 
it  has  been  the  invariable  rule  of  the  directors  that 
on  each  fresh  issue  of  capital  there  should  be  a  pro- 
portionate increase  of  the  reserve  fund  until,  as  we 
have  already  mentioned,  they  now  each  stand  at 

The  following  is  the  report  and  statement  of  accounts 
submitted  at  the  annual  meeting,  held  in  London  in 
February  last : — 

•'  The  directors  have  to  report  that  the  net  profits 
for  the  half-year  ending  31st  December,  1904,  after 
payment  of  all  expenses  and  making  provision  for  all 
bad  and  doubtful  debts,  amount  to  £291,896  2s.  7d., 
to  which  has  been  added  the  balance  of  £107,821  14s.  2d. 
brought  forward  from  last  account,  making  together  a 
total  sum  of  £399,717  16s.  9d.,  which  the  directors 
recommend  shall  be  appropriated  as  follows  j — 


"Dividends  at  the  rate  of  18  per 
cent,  per  annum  for  the  half-year 
ending  81st  December,  1904,  free 
of  Income  Tax,  payable  1st  Feb- 
ruary next  

*'  Bank  Premises  Eedemption  Fund.,. 

"  Balance  to  be  carried  forward  to 
next  account        

"It  is  with  deep  regret  the  Directors  have  to 
record  the  death  of  their  esteemed  colleague  Sir 
Joseph   Crosland. 

"A  Branch  of  the  Bank  will  shortly  be  opened  at 
Putney,    S.W." 

270,000  0 
20,000  0 

109,717  16 



£899,717  16 


Balancb'Shebt,  3l8T  December,  1904. 
Or.  Liabilities. 


To  Capital  Paid  up,  viz.:  £12  10s.  per  Share  on 

240,000  Shares  of  £60  each 3,000,000     0  0 

,,  Reserve  Fund        ..        ., 3,000,000    0  0 

„^Dividends  payable  on  1st  February,  1905     ..  270,000    0  0 

,,  Balance  of  Profit  and  Loss  Account,  as  below  109,717  16  9 

6,379,717  16    9 

,,  Current,  Deposit  and  other  Accounts 47,672,355  12    9 

,,  Acceptance  on  account  of  Customers 2,153,29010    6 

£56205,364    0    0 


Dr.  Assett. 

By  Cash  in  hand  and  at  Bank  of 

England       £9,140,499  16  10 

„  Money  at  Call  and  at  Short 

Notice  7,099,988  16    5 

16,240,488  13    3 

Intestments  : 

Consols    and    other    British 
Government  Securities      ..£3,556,007    7  10 
(of  which  £372,000  Consols 
is  lodged  for  Public  Accounts) 

Stocks  Guaranteed  by  the 
British  Government,  Indian 
Stocks,  Indian  Railway 
Guaranteed  Stocks  and  De- 
bentures            1,006,7§1  15    0 

British  Railway  Debenture 
and  Preference  Stocks, 
British  Corporation  Stocks    1,977,591    6    7 

Colonial  and  Foreign  Govern- 
ment Stocks  and  Bonds    ...        465,812  12    1 

Sundry  Investments  ...       450,135    2    2 

7,455,328    3    8 

„  Bills  of  Exchange     4,324,889  14    3 

,,  Advances  on  Current  Accounts,  Loans  on 
Security  and  other  Accounts  

,,  Liabilities  of  Customers  for  Acceptance,  as 
per  contra        

y,  Bank  Premises,  at  Head  Of&ce  and  Branches 

By  the  above  figures  it  can  be  seen  that  at  the 
close  of  1904  the  London,  City  &  Midland  Bank  held 
no  less  than  49*6  of  their  liability  to  the  public  in 
liquid  assets,  thus :  cash  in  hand,  19' 1  ;  cash  at 
call  and  notice,    14*9;    investments,   15*6. 

28,020,706  11 


24,749,807  1 


2,153,290  10 


1,281,559  16 


£56,205,364  0 



The  City  Bank. 
A  word  or  two  about  the  City  Bank.  The  charter 
of  its  incorporation  was  dated  20th  July,  1855,  and  the 
bank  commenced  business  in  August  of  the  same  year. 
The  paid-up  capital  was  originally  £150,000.  This  was 
increased  from  time  to  time,  until  at  the  date  of  the 
amalgamation  it  stood  at  £1,000,000.  By  the  end  of 
1865  a  reserve  fund  of  £140,000  had  been  built  up, 
but  at  the  half-yearly  meeting  in  July  of  the  following 
year  the  chairman  had  the  unpleasant  task  of  inform- 
ing the  shareholders  that  bad  debts  were  depending 
not  in  a  state  to  be  then  definitely  adjusted,  but  that 
£19,961  16s.  2d.  had  been  written  off  the  profits  to 
meet  them.  The  report  for  the  December  half  of  that 
year  contained  the  following  significant  sentences  : — 

"Under  the  protracted  depreciation  of  mercantile 
securities  these  debts  have  proved  more  serious  than 
was  at  that  time  anticipated,  and  in  order  to  entirely 
extinguish  the  loss  the  directors  very  much  regret  that 
it  has  been  found  necessary  to  trench  materially  on 
the  reserve  fund — a  fund  the  primary  object  of  which, 
under  the  deed  of  settlement,  is  to  meet  exigencies 
Buch  as  the  present.  The  directors,  however,  feel  con- 
fident,   from    the   improved    character    and  steady    ex- 


tension  of  this  business,  the  surplus  profits  of  the  bank 
will  enable  them  shortly  to  restore  the  reserve  fund 
to  its  former  amount." 

On  that  occasion  the  reserve  was  depleted  to  the 
extent  of  ^682, 060  12s.  4d.  The  directors  confidence 
was,  however,  well  founded,  since,  by  1871,  constant 
increments  had  once  again  brought  this  item  up  to 
;£100,000 ;  but  the  next  year,  "  in  consequence  of 
recent  failures,"  £85,000  had  to  be  withdrawn  to  meet 
losses  on  bills.  It  must  have  been  very  gratifying  to 
the  board  to  report,  at  the  close  of  1875,  that 
''£11,445  6s.  had  been  recovered  to  that  date  from 
accounts  previously  provided  for."  This  enabled  them 
to  vote  £15,000  to  be  re-transferred  to  the  reserve, 
and  showed  the  wisdom  of  the  policy  under  which 
the  bank  was  directed.  From  that  year  until  1888, 
the  reserve  fund  was  steadily  augumented,  sometimes 
out  of  profits,  sometimes  by  the  issue  of  new  shares, 
and  the  report  for  December,  1888,  stated  that 
"£20,000  from  profits  and  £100,000  premium  on 
20,000  new  shares  issued,"  being  transferred  to  reserve, 
brought  it  up  to  £500,000,  at  which  figure  it  stood 
at  the  time  of  the  amalgamation  in  1898. 



The  London  Joint- Stock  Bank,  Limited. 

This  bank  was  one  of  the  first  to  follow  the  example 
set  by  the  London  &  Westminster,  the  pioneers  of 
all  joint- stock  banking  in  the  metropolis.  The  original 
announcement  of  its  existence  contained  the  follow- 
ing statement  as  to  the  reason  for  its  establishment, 
*'  for  the  purpose  of  enabling  the  inhabitants  of  the 
metropolitan  districts  to  participate  more  extensively 
than  they  can  at  present  in  the  advantages  ajfforded 
by  the  new  system  of  banking,  by  means  of  joint- 
stock  establishments  (the  principles  of  which  are 
proved  to  be  in  every  respect  as  applicable  to  the 
metropolis  as  they  are  to  provincial  towns,  where 
private  banking  establishments  are  rapidly  grow- 
ing into  joint- stock  banks)  it  has  been  resolved  after 
deliberate  consideration  to  form  a  joint-stock  banking 
company,  to  be  called  *  The  London  Joint- Stock  Bank,' 
with  a  capital  of  ^63,000,000  divided  into  60,000  shares 
of  £50  each."  Such  was  the  original  statement  placed 
before  the  public,  and  it   was  well  subscribed  for,  the 


public  having  begun  to  appreciate  the  benefit  of 
Mr.  J.  S.  Gilbart's  creation,  the  London  &  West- 
minster Bank.  Temporary  offices  were  taken  at 
29  Coleman  Street,  and  the  business  commenced, 
some  customers  opening  current,  others  deposit  accounts. 
The  company  held  out  the  inducement  that  £2  per 
cent,  would  be  paid  on  current  and  £2J  per  cent, 
on  deposit  accounts. 

It  will  doubtless  be  of  interest  to  glance  at  the 
first  statement  published  by  the  Joint- Stock  after  its 
first  year  of  work,  and  compare  it  with  the  last 
published   one  : — 

Liabilities  and  Assets,   20th  ^Noybmbbr,  1837. 

Dr.  £        8.   d 

To   Capital   Paid-up,  being   £7  per    share    upon 

31,080  shares        217,560    0    0 

„  Amount  due  by  the  Bank,  including  money 
taken  upon  Security  and  their  Acceptances  at 
not  less  than  six  months'   date        594,101  17 

,,    Balance  carried  to  Credit  of  Profit  and  Loss 

Account       19,553    3    8 

£831,215     1     0 

Cr.  £         8.  d 

By  Exchequer  Billi 206,300  12  6 

„    India  Bonds          10,202  15  0 

,,    Bills  Discounted,   Loans    to    Customers,  and 

Cash   in  Bank       590,521  19  9 

,,    Banking    and   Preliminary   Expenses,   a  pro- 
portion of  which  will  be  annually  written  o£E  24,189  13  9 

£831.215    1  0 


Such  were  the  figures  in   1837.      Sixty-seven  years 

afterwards,  namely    at   the   close    of    1894,   they  were 

as   follows : — 

31 8T  December,  1904. 

Liabilities.  £  8.    d. 

To  Capital  Paid  up,  viz.,   120,000    Shares    at 

£15  per   Share 1,800,000    0    0 

„    Amount  of    the  Guarantee  Fund 1,140,000    0    0 

,,  Amount  due  by  the  Bank  on  Current  Ac- 
counts, Deposit  Receipts,  Circular  Notes,  &c.     16,351,268  12    0 

,,    Acceptances      1,199,155    2    3 

,,    Rebate  of    Interest  on    Bills    Discounted, 

not  yet  due,   carried  to  New  Account...  19,255  12     6 

, ,  Amount  of  Net  Profit  for  the  half-year  ended 
3l8t  December,  including  £22,746  9s.  2d. 
balance  of  Profit  and  Loss  Account, 
30th  June,  1904 £124,012    2  10 

Less  transferred  to  Super- 
annuation Allowance 
Account         5,600    0    0 


By  Government  Stock,  viz.,  £1,500,000  Consols 
taken  at  85      

,,   Other  British  Government  Securities 

,,   Indian,   Colonial    Government,    and    other 

,,  To  Securities  lodged   with  Public    Bodies 

,,  Cash  in  Hand  and  at  the  Bank  of  England 

,,  Money  at  Call  and  at  Short  Notice 

,,  Bills  Discounted,  Loans  and  other  Securities 

,,  Liabilities  of  Customers  for  Acceptances  as 
per  contra         

,,  Freehold  and  Leasehold  Premises 

119,012  2 


£20,628,691  9 


£    s. 


1,275,000  0 
1,114,873  15 


1,189,584  15 
16,987  10 
2,342,934  13 
4,575,752  0 
8,480,635  1 


1,199,155  2 
433,768  11 



£20,628,691  9 



So  far  as  the  capital  is  concerned,  a  second  issue 
was  made  in  1840,  by  which  the  amount  paid  up 
was  increased  to  ^6445, 1 20.  The  following  year 
14,466  further  shares  were  issued,  and  in  1865,  by 
a  further  issue  the  paid-up  capital  was  raised  to 
del, 080,000.  By  1868  it  had  been  increased  to 
del, 200,000,  and  in  1884  it  was  further  augmented 
by  £600,000,  thus  bringing  that  important  item  to 
its   present   amount — £1,800,000. 

Similarly  the  reserve,  or  guarantee  fund,  which  was 
founded  in  1837  by  the  appropriation  of  the  surplus 
profits— £2,932.  Until  the  year  1842  it  was  steadily 
added  to  from  the  current  profits,  and  then  stood  at 
£93,214.  The  next  year  to  equalise  the  dividend  it 
was  slightly  decreased.  The  dimunition  was  only 
temporary,  for  the  next  half-year  and  onwards,  till 
1860,  amounts  were  regularly  allocated  to  the  guaran- 
tee fund,  which  at  the  end  of  1859  reached  the 
substantial  sum  of  rather  more  than  £200,000.  In 
1860,  although  the  usual  dividend  was  paid,  a  sum 
of  no  less  than  £60,000  had  to  be  taken  from  the 
profits  and  set  aside  "to  cover  the  losses  incurred 
by  the  failure  of  Messrs.  Streatfield  &  Co.,  and  other 
houses  connected  with 'the  leather  trade."    From  that 


date  the  only  alteration  made  in  this  account  have 
been   by   regular  periodical   additions. 

The  bank  had  not  been  established  long  in  Cole- 
man Street  before  it  was  found  that  the  volume 
of  business  coming  in  demanded  larger  premises, 
so  a  site  was  purchased  and  a  building  erected  in 
Princes  Street,  Mansion  House.  The  report  for  June, 
1872,  stated  that  the  directors  had  succeeded  in  pur- 
chasing the  valuable  freehold  property  known  as  the 
"  Poultry  Chapel,"  adjoining  the  rear  of  the  bank  pre- 
mises in  Princes  Street.  ''  This  most  desirable  acquisi- 
tion," continued  the  report,  "  will  be  immediately  made 
available  to  meet  the  constantly  increasing  require- 
ments for  carrying  on  the  business  of  the  bank;  and 
the  directors  beg  to  congratulate  the  proprietors  on 
that  object  having  been  secured  at  an  outlay  so  com- 
paratively moderate,  considering  the  ulterior  advantage 
that  will  accrue  to   the  bank  from  the  purchase." 

Although  on  a  comparatively  small  scale,  the  London 
Joint- Stock  Bank  have  taken  over  other  similar  insti- 
tutions. In  1870  the  Alliance  Bank,  in  Southwark, 
was  absorbed,  and  the  same  year  the  business  of  the 
Albion  Bank,  in  Southwark,  was  purchased.  By  far 
the  most  important  amalgamation  the  Joint  have  ever 


effected  was  in  1893,  when  an  announcement  was  pub- 
blished  that  the  Imperial  Bank,  of  Lothbury,  one  of 
the  most  important  banking  institutions  in  London, 
had  been  procured.  The  Imperial  was  a  bank  with 
a  very  extensive  connection,  especially  amongst  mem- 
bers of  the  London  Stock  Exchange  —  in  fact,  so 
great  was  the  business  done  on  settling  days  that  the 
Imperial  and  the  Alliance  were  commonly  called  the 
*•  brokers'  banks."  The  purchase  added  some  ^63,000,000 
to  the  deposits  of  the  Joint- Stock  Bank,  and  at  the 
same  time  afforded  it  a  considerable  number  of  estab- 
lished branches  in  and  about  London.  What,  perhaps, 
was  of  almost  equal  importance,  it  gave  the  Joint  an 
outlet  for  its  surplus  funds,  in  the  same  manner  as  the 
City  Bank,  another  institution  extensively  patronised 
by  stockbrokers,  did  to  the  London,  City  &  Midland. 
In  1840  the  Joint  opened  a  branch  in  Henrietta 
Street,  Covent  Garden,  but  this  very  soon  after  was 
closed,  and  the  business  transferred  to  the  premises 
previously  occupied  by  Messrs.  Hammersley  in  Pall 
Mall.  In  186G  and  1868  branches  were  started  in 
Chancery  Lane  and  Smithfield  respectively.  The  Pad- 
dington  branch  was  opened  in  1872,  and  one  in 
Great    Tower    Street,    E.G.,    in    1888.      Eight    years 


later  the  bank  went  a  little  further  afield,  opening 
branches  in  Camberwell  and  Eotherhithe;  and  in 
1892  in  South  Kensington.  The  Eotherhithe  branch 
was  discontinued  in  1893.  Since  this  date  the 
management  have  given  more  attention  to  the  impor- 
tance of,  firstly,  the  feeding  of  their  own  institution 
in  Princes  Street,  and,  secondly,  of  offering  increased 
facilities  to  the  public.  Hence  many  other  offices 
have  been  established,  and  judging  from  the  last 
reports,  the  bank  appears  to  be  benefitting  by  its 
forward  policy. 

The  bank  was  registered  as  an  unlimited  company 
in   1873,   and  in   1882   as  limited. 

There  is  one  point  to  which  we  would  call  atten- 
tion, which  may  be  of  interest.  With  most  banks 
the  custom  obtains  of  issuing  rather  lengthy  reports 
to  their  shareholders,  and  even  in  the  early  days  the 
idea  seemed  to  be  that  the  longer  the  report  could 
be  spun  out  the  better.  It  might  be  as  well  for 
some  of  our  bank  officials  of  to-day  to  take  a  leaf 
out  of  the  record  book  of  the  London  Joint-Stock 
Bank.  The  report  for  the  half-year,  30th  June,  1851, 
ran : — 


"  The  accounts  which  the  directors  have  in 
the  course  of  their  duty  to  submit  to  the  share- 
holders, show  that  the  net  profits  of  the  bank 
during  the  six  months  completed  on  the  80th 
ult.  amount  to  £29,841  15s.  7d.  [The  pay- 
ment of  the  dividend  at  the  rate  of  £6  per 
cent,  per  annum,  clear  of  income-tax,  will 
leave  the  sum  of  £9,841  15s.  7d.  to  the  credit 
of  the  profit  and  loss  account  of  the  next 
half-year.  The  dividend  will  be  payable  on 
and  after   Friday,   the  25th  inst." 

That  was  all — brief,  succinct,  business-like:  what 
more  is  needed?  The  short  epitome  contains  all  the 
information  appreciated  by  the   shareholders. 

The  bank  has  still  plenty  of  scope  for  extension 
both  in  the  suburbs  and  the  provinces,  and  we  do 
not  doubt  that  under  the  present  very  competent 
direction  and  management  all  suitable  opportunities 
for  new  branch   business   will   be   carefully   considered. 



Martin  &  Company,  Limited. 

There  is  a  great  question  whether  the  old  firm  of 
Martin  &  Co.  was  established  before  or  after  the 
well-known  houses  of  Coutts  &  Co.  and  Child  &  Co. 
Each  has  its  budget  of  dates ;  each  has  its  treasured 
and  interesting  episodes  and  anecdotes  ;  each  can  afford 
to  take  a  supercilious  glance  at  those  joint-stock  banks 
which  sprang  into  existence  at  a  time  when  these  old 
private  banks  were  hoary  with  age.  There  is  the  tale 
of  its  origin  anent  the  grasshopper,  but  unquestionably 
that  is  all  a  myth— it  is  a  pretty  romance,  and  that 
is  all.  Mr.  Granville  Leveson-Gower,  of  Titsey,  in 
his  genealogy  of  the  family  of  the  Greshams  remarks 
**  that  the  legend  has  been  localized,  and  that  an  old 
dame  in  his  village  inquired  of  him  whether  he  knew 
the  origin  of  the  Greshams,  and  then  proceeded  to 
relate  the  story,  placing  the  scene  of  the  occurrence 
at  New  Hall,  in  the  adjoining  parish  of  Limpsfield. 
The  absurdity  of  this  legend  is  obvious  in  view  of 
the  fact  that  the  Greshams  were  a  well-known  Norfolk 


family,  taking  their  name  possibly  from  a  parish  of 
the  name  Gresham,   i.e.,   Grassham." 

It  may  here  be  remarked  that  grasshein  is  a  Ger- 
man word  for   grasshopper. 

Sir  Richard  Gresham  was  by  trade  a  mercer,  but 
in  1589,  when  Anne  of  Cleves  came  over  to  be  the 
bride  of  King  Henry  VIII.,  a  payment  is  recorded 
in  the  book  of  the  bank  as  follows :  '*  To  Sir  Richard 
Gresham  for  a  cheyne  of  fyne  golde  which  was  geven 
to  a  gent  that  came  from  the  Duke  of  Baoyer, 
£100  18s.  9d."  Evidently  from  this  statement  Gres- 
ham must    have   then  been   a  goldsmith  in    business. 

Again,  taking  our  notes  from  the  most  interesting 
book  of  Mr.  J.  B.  Martin,  we  find  that  Gresham 
"particularly  wished  to  erect  a  bourse  of  exchange 
in  Lombard  Street,  and  submitted  a  design  of  it  in 
1537  to  Cromwell  (then  the  Lord  Privy  Seal),  but 
delay  followed  delay,  and  there  was  a  lapse  of  some 
thirty  years  before  his  son.  Sir  Thomas  Gresham, 
carried  the   idea   out   to  its   completion." 

Sir  Thomas  Gresham,  who  was  born  in  1619, 
was,  according  to  Mr.  Martin,  apart  from  being  a 
mercer  "  before  all  else  a  financier,"  and  it  is  prob- 
able that   he  was  looked  on  in  some  degree   askance 


by  his  brothers  of  the  mercer's  craft,  since  he  is 
recorded  on  two  occasions,  1559  and  1560,  to  have 
advised  the  "raising  of  the  wind"  to  pay  his  Majesty's 
debts  by  laying  an  embargo  on  the  fleets  about  to 
sail  to  and  from  Antwerp  respectively,  until  the 
skippers  had  agreed  to  pay  to  the  Queen's  credi- 
tors in  Antwerp  considerable  sums  at  the  rate  of 
exchange  most  favourable  to  the  Crown  that  could 
be  extorted  from  the  men,  on  whom  the  mine  was 
not  to  be  sprung  until  the  goods  were  safely  on 
board.  On  the  first  of  these  ocassions  he  writes  to 
Cecil  recommending  him  to  send  for  the  Lord  Mayor 
(Sir  Thomas  Leigh,  1558-9)  and  eleven  other  princi- 
pal merchants  of  the  city,  among  whom  were  ♦*  Mr. 
Aldyman  Martynne  and  Lyonell  Dockett" — the  latter 
ft  reputed  partner  of  Gresham's — "  and  to  move  unto 
them  to  the  intent  that  they  might  flourish  in  the 
commonwealth,  as  aforetime  they  had  done,  that  the 
Queen  being  not  unmindful  of  the  payment  of  her 
debts  in  Antwerp,  had  thought  good  to  use  them 
(as  heretofore.   King  Edward,   her   brother,   dyd)." 

"And  for  the  accomplishment  of  the  premises,  the 
Queen's  Majestic  dowthe  requyre  at  your  handes  to 
paye  in  Flanders  xxs.   sterling  upon  every  cloth  that 


is  now  shipped,  after  the  rate  xxvs.  flemysh  for  the 
pound  sterling.  .  .  .  Finally,  ye  maye  not  come 
lower  than  to  hav  for  every  pound  sterling  xxiis. 
flemysh  (for  20,  for  so  the  exchange  passeth  at  this 
present).  But  I  trust  y*  will  be  at  22s.  6d.  ere 
they  hav  fynyshed  their  shipping.  Advertising  you 
yf  the  exchange  be  better  in  Lombard  Street  than 
22s.  in  any  wise  to  make  them  pay  after  that 

The  name  of  Martin  first  appeared  among  the 
goldsmiths  as  early  as  the  commencement  of  the 
reign  of  Queen  Elizabeth.  In  the  year  1558  Eichard 
Martyn,  or  Martin,  was  called  to  the  Livery  of  the 
Goldsmiths'  Company.  At  that  time  he  resided  at 
'*  The  Harpe,"  in  Goldsmiths'  Row,  Cheapside.  There 
is  no  direct  evidence  that  he  enjoyed  any  controlling 
influence  over  '*  The  Grasshopper,"  but  as  he  used 
the  same  armorial  bearings  as  the  bank  have  done 
ever  since,  it  seems  highly  probable  that  he  was 
a  partner. 

In  the  list  of  "Goldsmiths  kepeing  running  cashes" 
for  the  year  1677  there  is  the  firm  of  Messrs.  Dun- 
combe  &  Richard  Kent,  of  '*  The  Grasshopper,"  of 
Lombard   Street. 


In  1646  the  name  of  Stone  first  appears,  when 
William  Stone  *'  was  presented "  for  selling  beer  with- 
out a  license. 

It  is  very  probable  that  the  bank  was  burnt  down 
in  the  great  fire   of    1666, 

Mr.  J.  B.  Martin,  in  his  little  work  on  "  The 
Grasshopper,"  says  **it  is  a  tradition  that  James  II. 
kept  an  account  there  (at  "The  Grasshopper")  as 
well  as  at  Childs',  and  that  when,  after  his  abdica- 
tion and  flight,  1688,  he  sent  to  his  bankers  for  his 
balance,  the  latter,  as  good  bankers,  sent  it  to  him, 
while  the  former,  as  good  Whigs,  told  him  to  come 
and  fetch  it.  There  is  room  for  another  conjecture, 
namely,   that    his  Majesty's    account  was  overdrawn." 

Duncombe  became  Lord  Mayor  of  London  in  1709, 
prior  to  which  date  he  had  entered  into  partnership 
with  Mr.  Kichard  Smythe,  a  banker,  who  subsequently 
introduced  into  the  firm  one  Andrew  Stone  who  mar- 
ried, later,  Mr.  Smythe's  sister.  Whether  this  con- 
summation was  a  part  of  the  agreement  for  partner- 
ship or  not,  we  cannot  say.  In  his  will,  dated 
11th  February,  1711,  he  is  described  as  a  clothmaker. 
He  left  his  share  of  the  business  to  Thomas  Martin 
on  payment  of    £9,000  to  his  widow,   to  her  mother 


Mrs.  Holbrooke,  and  to  Nathaniel  Torriame.  After 
the  death  of  Andrew  Stone  Mr.  Thomas  Martin 
carried  on  the  business  alone  till  1714,  when  he 
took  into  partnership  his  brother  James.  About 
1780  or  1731  Thomas  Martin  retired,  and  Ebenezer 
Backwell  joined  the   firm. 

It  is  quite  impossible  for  us  to  give  in  detail  here 
the  various  changes  that  have  with  the  ordinary  run 
of  events  taken  place  with  regard  to  this  house  of 
such  venerable  age.  Let  us,  therefore,  now  confine 
ourselves  to  a  few  facts  both  of  interest  and  import- 
ance so  far  as  the  bank's  history  is  concerned.  In 
1766  Eichard  Stone  the  younger  married  Miss  Mary 
Herring,  and  next  year  that  lady's  sister  married 
Sir  Francis  Baring.  In  1764  John  and  Francis 
Baring  opened  an  account  at  "  The  Grasshopper," 
and  with  their  constantly  increasing  foreign  and 
colonial  connection  their  accounts  grew  to  very  great 
dimensions,  and  continued  exceedingly  active  until 
the  temporary  check  occurred  which  necessitated  the 
reconstruction  of   the  firm. 

On  the  death  of  Eichard  Stone  in  1802  the  vacancy 
was  filled  by  the  election  in  1806  of  James,  the 
younger    brother    of     John    Martin.       Henry     Stone, 


a  partner  who  had  come  on  the  scenes  m  1823, 
died  in  1844,  and  the  business  was  left  in  the  hands 
of  the  three  brothers,  John,  James,  and  Robert 
Martin,  and  George  Stone  the  younger.  The  latter 
died  in  1861,  when  the  family  became  extinct  in  the 
main  line,  and  thus  after  the  lapse  of  183  years  the 
business  once  more  became  Martin  &  Co,  Here  it 
may  be  interesting  to  record  that  Mr.  Robert  Martin 
married  Anne,  the  daughter  of  John  Biddulph,  of 
the  banking  i&rm  of  Cocks,  Biddulph  &  Co.,  of 
Charing  Cross,  and  their  two  sons,  Richard  Biddulph 
Martin  and  John  Biddulph  Martin,  joined  the  firm 
at  the  beginning  of  1861   and  1864  respectively. 

In"  1875  the  senior  partner,  John  Martin,  retired. 
In  1876  his  eldest  son,  Waldyce  Alexander  Hamilton 
Martin,  joined  the  firm.  After  the  sudden  death  of 
James  Martin  in  1878,  the  business  was  left  for  two 
years  in  the  hands  of  Richard  B.  Martin  and  John  B. 
Martin  and  their  cousin,  W.  A.  H.  Martin,  the  last 
name  retiring  in  1880.  Then  Fredk.  H,  Norman, 
whose  mother  was  the  daughter  of  Henry  Stone, 
came  on  the  scenes,  and  in  1864  his  brother,  Edward 
Norman,  was  admitted.  "The  firm  thus  constituted," 
says    Mr.    J.    B.    Martin,   "re-united    the   families    of 


Martin  and  Stone  in  business  relations,  all  the  four 
partners  having  a  common  ancestry  through  Richard 
Stone,  the  second  of  the  name,  by  his  marriage  with 
Mary  Herring."  The  father  of  the  two  new  partners 
was  for  many  years  a  director  of  the  Bank  of 
England,  while  the  eldest  son  was  a  partner  until 
his  death,  in  1889,  with  the  firm  of  Baring  Brothers. 

The  records  of  the  transactions  of  the  eminent  firm 
are  complete  from  1731.  In  the  books  there  is  an 
entry  in   1751 — 

"  To  Brydges  for  killing  the  Buggs  in  the  shop, 
£1   Is." 

Poor  Brydges  I  how  little  did  he  think  when  he 
was  calmly  and  quietly  executing  his  strange  com- 
mission in  1751  that,  more  than  150  years  afterwards, 
his  action  would  be  commented  on,  and  his  curious 
occupation  cause  an  amused  smile  to  flit  over  the 
faces  of  the  heads  of  houses,  which  in  his  time  were 
not  even  contemplated. 

From  1720  to  1750  the  business  men  of  the  day 
were  in  a  state  of  frenzied  excitement,  making  vast 
profits  only  to  rush  into  tremendous  speculations  and 


finally  to  be  buried   in   a  hopeless  ruin.      Gay  in  his 

letter  to  Moon   (a  goldsmith)  says : 

When  credit  sank  and  commerce  gasping  lay, 
Thou  stoodst,  nor  sent  one  bill  unpaid  away : 
When  not  a  guinea  chinked  on  Martin'' s  hoards, 
And  Atwell's  self  was  drained  of  all  his  hoards. 

"The  Grasshopper"  was  rebuilt  in  1794.  The 
records  of  the  bank  show  that  it  has  long  been 
a  custom  of  the  firm  to  take  into  partnership  men 
who  have  served  them  as  clerks. 

We  are  sure  that  all  our  readers  will  be  only  too 
pleased  to  scan  the  following  copy  of  the  balance- 
sheet  for  the  year   1731. 

Drs.  to  Sever  all. 

&  ».   d. 

In  the  Ledger  139,995    3    2 

In  the  Note- Book 19,476  16    9 

£159,471  19  11 

Crs.  hy. 

£  s.  d. 

Discount  Book          83,177  4  11 

Ledger  out  of  Cash 1,724  7  3 

Bailee,  in  Cash         74,570  7  9 

£159,471  19  11 

"Xmas,   1781. 
"The     before-written     accounts    in    Fol.     1,     2,     8 
and    4    containe    the    perticulers    of   Debts    owing    by 


Mr.  James  Martin  &  Company  on  the  24tli  Decem- 
ber last,  when  Mr.  Eobert  Surman  came  in  a  part- 
ner. And  in  Folio  5  and  6  is  an  account  and 
Valuation  of  the  eJBfects  to  answer  the  same  in  our 

"  James  Martin. 
'•  E.  Surman. 
"Jo.  Leaver. 
**  EicHD.  Stone." 

*'  Witness, 

**  Jno.  Martin." 
From  the  published  researches  of  Mr.  J.  B.  Martin, 
in  his  entertaining  book  on  '*  The  Grasshopper,"  we 
take  the  following  list  of  some  notable  customers 
who  have  honoured  the  famous  old  bank  with  their 
patronage : 

1731.  James  Jenner. 
Francis  WoUaston. 
Nicholas  Wollaston 
William  Wollaston. 
Thomas  Colclough. 

1732.  James  Buchanan. 
1748.   J.  Peter  Burrell. 

J.  Fuller  ton. 
1744.   Quarles  Harris. 

1749.   Van  Voorst  &  Boon. 
1748.   John  Aislabie. 
1761.   Gonville  and  Caius 

Dr.  Thomas  Heber- 


1763.  George  Gostling. 

1764.  John    and    Francis 
Baring  &  Co. 

Capt.     Charles    Bod-     1770.   Charrington,    Moss 
dam.  &  Co. 



Thomas  Boddington. 


Peter  Aubertin. 

Samuel  Brandram. 

Hugh  Price. 

Peter  Floyer. 


General  W.Belford. 


Jane  Buchanan. 


Abraham  Grimes. 

Eichd.  Butler. 

Wm.Dixwell  Grimes 

Thomas  Boddam. 


Sir  Francis  Geary, 

Archibald  Buchanan. 


Joseph  Banks. 

Cuthbert      Colling- 

Joseph  Chambers. 


John  Fullerton. 


Henshaw  Eussell. 

Jere.  Eayment  Ha,ds- 


Nesbitts  &  Co. 



Gustavus  Belford. 

Dr.  Willm.  Heberden. 

E.  &  T.  Neave. 

Samuel  Lloyd. 


Eichard  Bruce. 

Eichard  Myddelton. 

Oxley  &  Co. 

Eichard  Maitland. 


WilHam  Leckmere. 

Thomas  Powys. 

Sir    John    Temple, 

David  Papillon. 



Neave  &  Aislabie. 


Willm.  Agnew. 


Admiral  Francis  Geary 

Samuel  Bilke. 


Lazarus  Venables 

WilUam  Tidd. 


Eichard  Neave. 


Assur  Keyser. 


Lady  Anne  Boswell. 



William  Lock. 


Hugh  Baillie. 


1794.   Wm.  Upton. 

Thomas  Lovellc 
1797.  Lord  LiHord. 

Thomas  Lovett. 

Mathew  Marshall. 

Peter  Cherry. 


1798.  Angerstein  &  others. 
Glutton  &  Sons. 
Samuel  Wallace. 

1799.  Atkinson  &  Co. 
Lewis  Corkran. 
Mary  Larkin. 
James  Carey. 

1748  there  is  a  record  of  the  account  of  the 
Hospital  for  Exposed  Children — now,  most  probably, 
the  FoundUng  Hospital.  In  1789  there  appears  an 
account  in  the  name  of    *•  Sunday  Schools." 



The  Metropolitan  Bank  (of  England  and   Wales) 

This  is  another  of  the  big  banks  which  came  to 
London  from  the  Black  Country,  and  "came  to  stay," 
although  the  bulk  of  its  connection  is  far  more  with 
the  provinces  than  with  the  metropolis.  As  a  member 
of  the  London  Bankers'  Clearing  House  it  holds  a 
position  amongst  the  leading  banks  in  the  country. 

It  was  incorporated  on  1st  August,  1866,  as  the 
Birmingham  Banking  Company,  with  its  head  office 
at  Bennett's  Hill,  Birmingham.  The  authorised  capital 
was  jei, 500,000,  divided  into  80,000  shares  of  £50 
each.  Between  August,  1866,  and  June,  1867,  there 
were  issued  16,684  of  these  shares.  From  time  to 
time  the  capital  has  been  increased— thus  in  1872 
the  authorised  capital  stood  at  £2,000,000;  in  1880 
at  £8,500,000;  in  1889,  £5,000,000;  and  in  1892 
at  £7,500,000,  at  which  figure  it  still  remains.  The 
paid-up  capital  is  now  £500,000,  while  the  reserve 
fund  amounts  to  £850,000. 


This  bank,  like  Lloyds  and  the  London,  City  &  Mid- 
land, both  of  which  also  hailed  from  the  capital 
of  the  Midlands,  owes  much  of  its  rapid  progress  to 
amalgamations,  though  of  late  years  these  have  taken 
place  but  seldom.  In  1880  the  Stourbridge  &  Kid- 
derminster Banking  Company  was  taken  over,  to 
be  followed  by  the  absorption  nine  years  later  of  the 
Staffordshire  Joint- Stock  Bank,  Limited.  These  two 
amalgamations  greatly  enlarged  the  sphere  in  which 
the  bank  had  hitherto  worked.  In  1889  the  Bir- 
mingham Banking  Company  made  their  biggest  coup 
by  the  absorption  of  the  Koyal  Exchange  Bank  (of 
London).  It  was  a  good  stroke,  for  though  the  Royal 
Exchange  Bank  had  had  a  very  chequered  career,  and 
changed  its  name  on  one,  if  not  two  occasions,  it  had 
a  seat  in  the  London  Bankers'  Clearing  House,  to  attain 
which  is  the  aim  and  ambition  of  almost  every  bank 
in  the  country.  True,  the  business  of  the  Royal 
Exchange — the  old  ''Metropolitan" — was  but  small, 
and  the  reputation  it  enjoyed  was  none  of  the  best. 
Yet  the  fact  remains  it  had  a  seat  in  the  Temple  of 
Mammon — by  some  means  or  other  it  had  been  allowed 
to  cross  the  sacred  threshold  of  the  House — and  hence 
the  new  mid-country  bank  could  enter  London  with  a 


certain  amount  of  distinction,  and  at  once  occupy  a 
position  which  many  much  larger  estabhshments  had 
ardently  longed  for  for  years.  It  was  a  good  move 
well  worthy  of  the  astute  chief  then  at  the  helm. 
Then  it  was  that  the  name  was  changed  to  the 
Metropolitan  &  Birmingham  Bank,  Limited,  and  the 
same  year  the  private  bank  of  Cooper,  Purton  &  Com- 
pany was  absorbed. 

But  by  this  time  the  directors  of  the  Metropolitan 
had  the  fever  of  amalgamation  upon  them,  and  could 
not  long  remain  quiescent.  In  1892  the  banking  world 
was  greatly  surprised  by  the  announcement  that  the 
South  Wales  Union  Bank  had  been  taken  over  with 
all  its  branches,  thus  giving  the  Metropolitan  a  very 
strong  footing  in  South  Wales  and  a  splendid  con- 
nection in  a  very  important  district.  The  new  ven- 
ture necessitated  another  change  of  title,  and  it  was 
announced  that  in  future  the  bank  would  be  known 
as  ''  The  Metropolitan,  Birmingham  &  South  Wales 
Bank,  Limited." 

Then  followed  an  important  event  in  the  bank's 
history.  It  was  at  this  time  that  the  directors  of 
the  National  Bank  of  Wales  were  coquetting  with 
first    one    and    then    another    of    the   leading  London 


banks.  As  a  point  of  fact,  the  National  Bank  of 
Wales  was  in  the  market,  and  there  were  undoubt- 
edly several  of  the  London  Clearing  Banks  prepared 
to  buy  it  at  a  price  for  the  sake  of  securing  its 
extensive  connection  in  Wales.  Apparently  the  first 
favourite  among  the  competitors  were  the  London 
City  &  Midland — or  the  London  &  Midland  as  it 
then  was — and  to  this  institution  the  agency  of  the 
Welsh  bank  was  transferred.  It  was  an  open  secret 
that  the  transfer  meant  that  an  absorption  would  take 
place  a  little  later  on,  and  that  Mr.  E.  H.  Holden 
would  be  able  to  add  one  more  to  the  list  of  banks 
which  the  Midland  had  procured  through  his  instru- 
mentality. This  time,  however,  the  wiseacres  were 
entirely  wrong  in  their  prognostications.  When  every- 
one felt  assured  that  the  amalgamation  of  the  National 
of  Wales  with  the  London  &  Midland  was  un  fail 
accompUj  it  fell  through.  It  was  late  on  a  Saturday 
night,  in  1893,  that  negotiations  were  broken  off 
between  the  two  banks :  the  folloicing  Monday  morning 
the  money  articles  of  the  leading  newspapers  con- 
tained the  announcement  that  "terms  of  amalgama- 
tion "  had  been  arranged  between  the  Metropolitan, 
Birmingham   &   South   Wales  Bank,  Limited,    and   the 


National  Bank  of  Wales,  Limited.  That  was  one  of 
Mr.  James  Leigh's  smartest  moves.  He  had  secured 
numerous  offices  in  various  parts  of  Wales  in  which 
his  bank  had  hitherto  not  been  represented,  and  also 
a  very  extensive  connection. 

There  was  at  the  time  a  considerable  amount  of 
correspondence  in  the  South  Wales  Daily  Neivs  over 
the  terms  of  purchase.  By  some  means  the  news- 
paper received  the  information  some  time  before  the 
shareholders  had  their  circulars  sent  to  them,  but 
though  the  controversy  lasted  some  while  it  gradually 
dwindled  down  and  down  until  the  amalgamation  had 
become  one  of  the  things  of  the  past,  and  the  share- 
holders commenced  to  wonder  what  Mr.  Leigh  would 
put  before  them  next.  There  was  no  question  what- 
ever that  the  cost  of  the  National  Bank  of  Wales 
was  a  great  deal  more  than  was  anticipated,  but  it 
redounds  to  the  credit  of  the  management  of  the 
Metropolitan  to  say  that  when  it  was  found  that  the 
assets  taken  over  fell  a  long  way  below  the  antici- 
pated amount  the  matter  was  faced  in  a  business- 
like way,  and  the  large  reserve  fund  and  some  of 
the  surplus  profits  were  utilized  year  by  year,  till 
the    bank  had   cleared  off    all   the   unexpected    losses. 


That  this  policy  was  a  very  wise  one  has  been 
amply  proved  by  subsequent  figures.  The  connection 
had  been  secured,  and  after  the  needed  pruning  had 
taken  place,  immediately  began  to  bear  fruit:  and 
ever  since  the  bank  has  constantly  consolidated  its 

The  first  branch  was  opened  in  Walsall  in  1874, 
and  ever  since  then  the  bank  has  started  new 
establishments  wherever  opportunity  served.  A  keen 
eye  has  been  kept  on  all  neighbourhoods  in  the  pro- 
vinces likely  to  afford  favourable  prospects  for  bank 
development,  until  to-day — in  the  Midland  and  South 
Wales  at  all  events — the  Metropolitan  has  become  an 
important  factor  in  the  financial  world. 

From  the  very  outset  the  bank  bid  fair  to  be  a 
success,  since  at  the  end  of  the  first  year  the  deposit 
and  current  accounts  amounted  to  nearly  £600,000. 
Four  years  later  the  total  of  this  item  had  doubled. 
In  1880  they  were  represented  by  more  than 
je2,600,000 ;  in  1889  the  total  had  turned  £4,000,000 ; 
in  1893,  £6,000,000 ;  in  1896  it  was  within  an  ace  of 
£7,000,000 ;   and  now  it  is  nearly  £8,600,000. 

The  first  manager  was  Mr.  Thomas  F.  Shaw,  who 
retired    in    1876,    and    was   succeeded   by   Mr.   P.   W. 


Walker,  who  resigned  his  position  the  same  year. 
Then  Mr.  James  Leigh  took  the  helm  as  general 
manager,  and  it  was  owing  to  his  remarkably  keen 
business  insight  and  his  indefatigable  exertions  that 
the  bank  made  its  way  by  great  and  rapid  strides  to 
the  position  it  now  enjoys.  When  Mr.  Leigh  was 
appointed  general  manager  the  bank  was  a  small  one, 
comparatively  speaking,  when  he  died  he  left  it  one 
of  '*  the  clearing  banks  of  London."  The  present 
general  manager  is  Mr.  F.  W.  Nash. 

It  is  of  quite  recent  years  that  it  was  decided  to 
again  change  the  designation  of  the  institution,  this 
time  to  the  "  Metropolitan  Bank  (of  England  and 
Wales),  Limited."  The  alteration  was  a  wise  one,  but 
we  feel  that  it  would  be  still  better  if  the  title  were 
even  further  curtailed,  so  that  the  bank  could  be 
known  as  "  The  Metropolitan  Bank,  Limited." 

The  report  and  balance-sheet  for  the  year  ended 
81st  December  last  were  as  follows  : — 

**In  presenting  the  thirty-ninth  annual  report  the 
directors  beg  leave  to  state  that  the  net  profits  for 
the  past  year,  after  making  ample  provision  for  bad 
and  doubtful  debts,  and  allowing  for  rebate  on  bills 
current,   amount  to   £85,469   10s.   7d.,   to   which   must 


be  added  the  amount  brought  forward  from  the 
previous  year,  i61 1,955  4s.  7d.,  making  a  total  dis- 
posable sum  of  ^697,424  15s.  2d.,  which  has  been 
appropriated  as  follows  : — 

•*  Dividend  of  12J  per  cent,  per  annum 
for  the  half-year  ended  80th  June, 
1904 £31,250     0    0 

"  Dividend  of  15  per  cent,  per  annum 
for  the  half-year  ended  31st  Decem- 
ber, payable  1st  February  next    ...     87,500    0    0 

"  Income   Tax  paid  for    Shareholders      8,865  17    9 

**Bank    Premises    Redemption  Fund, 

being  ^61,000  and  ^61,210   15s.   4d. 

interest  on    the    Fund,   transferred 

from  the  profits  of  the  past  year...       2,210  15     4 

"  Transferred  to  Officers'  Pension  Fund  2,500  0  0 
*'  Written  off  Bank  Premises  Account  5,000  0  0 
"Balance  carried  forward      15,598    2     1 

£97,424  15     2 


3l8T  December,  1904. 

Liabilities.  £        s.  d. 

Due  by  the  Bank  on  Current,  Deposit  and  other 

Accounts     8,314,267  17  2 

Seven  Days  and  other  Drafts         10,894  18  9 

Foreign  Bills  negotiated  as  per  contra     56,677    8  9 

Bills  for  Collection  as  per  contra 63,153  11  10 

Rebate  on  Bills  discounted 4,841  11  5 

Proprietors^  Funds. 

Paid-up  Capital £500,000  0  0 

Guarantee  Fund 350,000  0  0 

Bank  Premises  Redemption  Fund  41,784  4  10 
Dividend  payable  1st  February 

next        37,500  0  0 

Profit  and  Loss  Account  balance 

carried  forward          15,598  2  1 

8,449,835    7  11 

Investments,  viz.: — 

British  and  Indian  Govern- 
ment Securities        

Colonial  Government  Securi- 
ties, Railway  and  Corpora- 
tion Stocks  and  Debenture 

944,882     6  11 
£9,394,717  14  10 

Assets.  £        8.    d. 

Cash  in  hand  and  at  the  Bank  of  England        ...        774,462  11    4 
Cash  at  Call  and  at  Short  Notice 1.502,155    2    5 

Bills  of  Exchange 




666,373  11 


649,511  19 





4,242,622    7     2 

Due  to  the  Bank  on  Current  and  other  Accounts, 
after  deducting  provision  for  bad  and  doubt- 
ful debts  and  contingencies       4,684,324  10    9 

Foreign  Bills  negotiated  as  per  contra 56,677     8    9 

Bills  for  Collection  as  per  contra 63,153  1110 

Bank  Premises  and  Furniture  at  London,  Bir- 
mingham, and  Branches,  less  amount  written 
off  this  year  347,939  16    4 

£9,394,717  14  10 



The    National    Bank. 

This  bank  was  originally  the  National  Bank  of  Ire- 
land, and  was  founded  as  far  back  as  1885.  Identi- 
fied with  this  institution  is  the  name  of  the  great 
Daniel  O'Connell,  a  full  length  portrait  of  whom,  by 
Sir  David  Wilkie,  hangs  in  the  board-room  of  the 
head  office   in   Old  Broad  Street,  London. 

The  original  intention  was  to  cater  for  the  require- 
ments of  people  resident  in  Ireland,  and  this  has 
been  ever  since  constantly  followed  out,  until  to-day 
one  sees  branches  not  only  in  almost  every  large 
town,  but  in  most  of  the  smaller  ones  and  villages 
in  the  Emerald  Isle.  Despite  the  fact  that  for  many 
years  the  bank  has  enjoyed  a  very  extensive  London 
business,  Ireland  itself  has  never  been  lost  sight  of 
for  a  single  day.  Where  there  is  not  a  branch  there 
is  a  sub-branch,  or  an  office  open  for  a  few  days  a 
week,  or  one  open  on  certain  days  for  a  few  hours 
only.  The  National  Bank  is  and  has  long  been 
essentially    a    caterer    for     **the    people"  —  the    little 


tradesman,  the  small  farmer,  equally  witli  the  mer- 
chant, the  landowner,  and  the  manufacturer.  It  was 
started  on  totally  different  lines  to  those  of  any  of 
the  banks  whose  history  we  record  in  this  volume. 
This  was  the  original  plan :  each  branch  opened  was 
treated  in  every  respect* as  though  it  were  a  separate 
bank,  always,  of  course,  with  the  proviso,  that  in 
case  of  need,  the  parent  office  might  be  called  upon 
to  lend  a  helping  hand.  It  was  intended  in  the 
first  instance  to  divide  the  profits  with  the  local  body 
of  constituents  specially  interested  in  each  branch. 

The  bank  was  a  success  from  its  start ;  and  greatly 
gratified  must  the  directors  and  their  chairman  have 
been  on  seeing  the  rapid  growth  of  the  institution 
which  they  had  founded;  and  which  had  immediately 
received  the  stamp  of  public  approval,  backed  by 
public  support.  The  bank  first  started  business  at 
Carrick-on-Suir  on  28th  January,  1835,  and  almost 
at  once  it  was  found  necessary  to  open  branches  in 
various  directions.  On  this  point  the  following  ex- 
tracts from  the  first  report,  dated  25th  May,  1836, 
are  very  interesting.  After  giving  a  list  of  twenty 
offices  which  had  been  opened  up  to  that  period, 
the  report  continues  : — 


**  Several  other  towns  are  under  consideration,  and 
branches  will  be  opened  in  them  in  the  present  year. 
The  directors  are  now  engaged  upon  the  formation 
of  a  metropolitan  bank  in  Dublin,  as  a  branch  of 
the  National  Bank  of  Ireland,  with  very  extensive 
capital  and  objects,  including  a  district  hitherto 
neglected  in  banking  accommodation,  by  reason  of 
the  privileges  of  the  Bank  of  Ireland  Charter,  and 
containing  a  population  of  1,500,000  inhabitants ;  but 
the  plan  of  the  bank  and  its  connection  with  the 
National  Bank  of  Ireland  will  be  such  as  not  ta 
interfere  with  any  of  those  privileges,  also  it  will  be 
prepared  to  take  advantage  of  any  change  made  in 

Continuing,  the  report  refers  in  the  following  terms 
to   the  work  up  to  that  time  accomplished : — 

**  The  directors  cannot  close  this  report  without 
adverting  to  the  good  effects,  in  so  short  a  time, 
already  visible  in  Ireland,  arising  in  some  degree 
from  the  extension  of  their  operations,  combined  with 
the  high  rate  of  agricultural  prices  in  the  past  and 
present  years,  as  compared  with  the  former  ones,  the 
one  enabling  the  agriculturist  to  dispose  of  his  pro- 
duce   to    advantage,   and    the    other   to  discharge    his 


obligations  with  punctuality.  It  is  hoped  that  by 
due  caution  and  the  prudent  development  of  the 
country,  many  social  evils  will  be  mitigated,  and 
the  National  Bank  of  Ireland  will  be  fully  compen- 
sated for  ijjie  part  it  has  taken  in  promoting  this 
permanent  object,  by  the  strong  hold  it  has  been  the 
study  of  the  directors  to  obtain  for  it  in  the  affection 
of  the  people." 

Thus  said  the  first  report  of  the  directors,  with  Mr. 
Daniel  O'Connell  at  their  head.  The  forecast  was 
sanguine,  but  events  have  proved  that  the  case  was 
not  overstated.  There  can  be  no  question  that  the 
bank  did  rapidly  secure  *'  the  affection  of  the  people," 
but,  what  is  still  more  important,  that  affection  is 
greater  now  than  ever.  To  use  a  phrase  of  the 
day,  the  National  Bank  of  Ireland  '*  caught  on." 
It  was  an  experiment  which  turned  out  eminently 
satisfactory :  it  was  a  new  departure  which  speedily 
showed  that  it  was  more  than  justified:  it  was  a 
revolution  in  the  then  existing  banking  world  of  Ire- 
land, and  we  can  quite  understand  how  it  is  that 
now,  seventy  years  later,  the  painting  of  the  founder 
occupies  so  prominent  a  position  in  the  board-room  at 
the  head  office  in  London. 


Before  going  further  with  the  history  of  this  Irish 
bank  let  us  take  a  glance  at  the  balance-sheet,  show- 
ing the   result   of  the   first   eleven  months   trading. 

Balancb-shbbt,  3l8T  Decbmber,  1835. 


£      s.    d. 

Capital 874,140  12  11 

Circulation         521,745    0    0 

Deposits 256,638  12    1 

Proprietors' undivided  fund 14,520  15  11 

£1,167.045     0  11 


£      s.  d. 

Investments       155,740  12  6 

Securities           826,638    1  6 

Specie  and  Cash  at  Bankers 166,47114  1 

London  preliminary  expenses,  to  be  liquidated  in 

four  years       .  8,547    3  8 

Branch  ditto  ditto  in  five  years 9,647    9  2 

£1,167,045    0  11 

A  little  further  on  in  this  chapter  we  will  give  a 
copy  of  the  balance-sheet  published  for  the  year  ended 
81st  December,   1904. 

The  first  and  only  amalgamation  or  absorption  ever 
effected  by  the  bank  was  the  London  &  DubUn  Bank 
in  1847,  BO  that  one  can  regard  the  great  growth  of 
its    figures    as    an    evidence     of    steady    and    natural 


increase    of    business    with  no    undue   and  misleading 

The  bank  opened  an  ojffice  in  London  in  1854, 
when  the  title  was  changed  to  "  the  National  Bank," 
since  when  no  alteration  of  the  name  has  been  made. 
New  shares  were  issued  from  time  to  time,  and  by 
1865  the  paid-up  capital  stood  at  £600,000.  That 
year  a  fresh  issue  of  capital  was  made,  and  by  this 
time  BO  popular  had  the  bank  become  that  there  was 
not  the  slightest  difficulty  in  having  the  full  amount — 
issued  at  a  heavy  premium — more  than  fully  sub- 
scribed for.  The  result  was  most  gratifying — the  paid- 
up  capital  was  increased  by  £600,000,  and  so  stood 
at  £1,200,000.  But  on  the  issue  the  premiums  received 
amounted  to  half-a-million  pounds  sterling,  and,  to 
the  credit  of  directors  and  shareholders  be  it  said, 
that  the  whole  of  this  large  sum  was  at  once  placed 
to  the  credit  of  the  reserve  fund.  Later,  the  directors 
took  a  very  popular  step :  they  decided  to  issue,  as  a 
bonus,  the  remaining  shares,  the  necessary  sum  paid-up 
per  share— namely,  £300,000 — being  withdrawn  from  the 
reserve  fund.  The  shareholders  were  greatly  pleased, 
and  we  have  no  doubt  that  a  large  influx  of  busi- 
ness was  the  natural  consequence.     Ably  supported  by 


their  shareholders,  and  with  the  full  confidence  of 
their  customers,  there  is  no  need  to  wonder  that  the 
subsequent  progress  was  rapid,  though  steady. 

By  this  distribution  the  paid-up  capital  was  increased 
to  ^1,600,000,  at  which  figure  it  has  since  remained. 
It  is  almost  a  question  whether  the  action  of  the 
directors  in  making  this  distribution  was  not  prema- 
ture, although,  of  course,  it  was  an  impossibility  to 
foretell  what  was  coming.  The  following  year,  1866, 
when  the  great  panic  was  upon  us,  when  banks  were 
closing  their  doors,  merchants  failing  on  all  sides, 
financiers  coming  to  a  crash,  when  credit  was  at  its 
lowest  ebb,  when  business  was  paralyzed;  when  houses, 
which  had  weathered  the  storms  of  a  century,  col- 
lapsed like  a  pack  of  cards;  when  hundreds  of  thou- 
sands of  persons  were  ruined ;  when  many  wealthy 
people  were  reduced  to  poverty — that  was  the  time 
when  the  strength  and  stability  of  all  the  banks  were 
tested  and  their  resources  tried  to  the  utmost.  Like 
all  the  rest  the  National  felt  the  stress  and  strain, 
and  it  weathered  the  storm,  but  for  many  a  long 
day  afterwards  it  felt  the  effects.  The  bank  made 
heavy  losses,  amounting  to  upwards  of  £500,000 
which  amount,  heavy  though  it  was,  was  immedi- 
ately   written    off   the    reserve    fund.      This    was    the 


first  and  only  serious  blow  the  National  had  received : 
the  directors  realized  the  gravity  of  the  situation 
and  acted  with  promptiude.  When  the  loss  was 
made,  the  then  chairman  (Sir  Joseph  Neale  M'Kenna) 
and  the  whole  board  resigned;  the  resignations  were 
accepted,  new  blood  were  introduced,  with  the  result 
that  with  caution,  begotten  of  experience,  the  bank 
again  resumed  its  progress,  and  the  bank  immedi- 
ately recommenced  to  build  up  a  reserve,  which  to-day 
reaches  the  highly  satisfactory  and  very  substantial 
sum  of  ^6500,000. 

It  was  five  years  after  its  advent  in  London  that 
the  National  Bank  obtained  a  seat  in  the  Clearing 
House.  That  institution,  established  by  private  bankers 
for  private  bankers,  greatly  objected  to,  and  most 
strenuously  opposed  strangers  crossing  the  sacred 
threshold  of  their  *'  Temple."  The  new  f angled,  so- 
called,  joint-stock  banks  were  of  mushroom  growth, 
and  might  at  any  moment  wither  and  die.  But,  as 
year  by  year  they  not  only  multiplied  but  rapidly 
increased  in  strength  and  popularity,  the  private 
bankers  were  reluctantly  forced  to  the  conclusion  that 
their  rivals  meant  to  compete  with  them.  It  was  in 
1859   that  the  National   obtained  admittance,   and   the 


directors  immediately  felt  the  effect  that  this  made  to 
the  business. 

The  National  is  the  one  bank  in  the  House,  with 
the  exception  of  Parr's,  which  has  the  privilege  of 
issuing  its  own  notes.  So  far  as  the  latter  is  con- 
cerned the  issue  is  lilliputian,  and  was  only  recently 
acquired  by  the  absorption  of  a  small  bank  in  the 
Isle  of  Man.  As  regards  the  National,  however,  the 
note  issue  is  a  most  important  item.  Glancing  at  a 
list  now  before  us  containing  the  figures — from  the 
last  published  balance-sheets — of  100  banks  in  England, 
Scotland,  and  Ireland,  we  note  that  with  the  excep- 
tion of  the  Bank  of  Ireland,  none  other  has  so  large 
a  note  issue  as  the  National.  The  circulation  of  the 
National  on  the  81st  December  last  was  £1,094,986. 
It  is,  of  course,  quite  understood  that  the  issue  is  in 
Ireland  only.  The  bank  has  one  of  the  largest  Stock 
Exchange  connections  in  the  metropolis.  Its  situa- 
tion in  Old  Bond  Street  lends  itself,  by  reason  of  its 
close  proximity  to  the  exchange,  to  this  class  of  busi- 
ness, and  could  the  ordinary  reader  be  in  the  Clearing 
House  on  a  settling  day,  he  would  be  almost  thunder- 
struck by  the  rain  of  bundles  and  drafts  thrown  on 
the  dishes  of  the  National   "clearers."     Yet  the  work 


is  carried  through  almost  automatically,  with  no  con- 
fusion, no  bustle.  It  is  a  matter  for  surprise  that  so 
vast  an  amount  of  work  can  be  got  through  in  so 
very  limited  a  space  of  time. 

That  the  bank  is  well  managed  and  engineered 
there  can  be  no  doubt,  and  it  is  equally  clear  that 
its  reputation  is  as  high  as  that  of  any  institution 
in  the  House.  While  the  word  of  the  day  appears 
to  be  amalgamation  the  National  is  quite  content  to 
pursue  the  even  tenour  of  its  way,  increasing  its 
figures  by  increasing  its  business.  Nor  have  the 
authorities  any  reason  to  regret  that  policy  which  has 
been  so  successful  in  the  past  and  is,  under  the  same 
careful  management,  sure  to  be  equally  successful  in 
the  future. 


The  following  is  a  copy  of  the  balance-sheet  for  the 
half-year  ended   81st  December,  1904  : — 

Balance- Sheet,  SIst  December,  1904. 

Dr.  £        s.    d. 

To  Capital  paid-up  on  150,000  Shares     1,500,000    0    0 

„   Rest  or  Undivided  Profits— Consols  at  87i  ...        500,000    0    0 

,,   Notes  in  Circulation       1,094,986    0    0 

„  Amount  due  by  the  Bank  on  Deposits  and 

Current  Accounts  11.625,302     5     5 

„    Acceptance  to  Bankers' Drafts  and  on  Security       109,050    0    0 

,,    Rebate  on  Bills  not  due  11,567    0    0 

,,  Net  Profits  for  the  Half-year,  including 
£16,333  12s.  lOd.  brought  forward  from  the 
30th  June,  1904 115,406  11  11 

£14,856,311  17    4 

Cr.  £        e.    d. 

By  Cash    on  hand   at   Head  Offtce,   Branches, 

and  Bank  of  England 1,494,48112    6 

„   Money  at  Call  and  at  Short  Notice 1,970,617  12    2 

,,    Government  Securities  —  including  Rest  or 

Undivided  Profits         1,532,474  14    9 

,,   Corporation,  Railway,  and  other  Stocks       ...        152,308    8    0 

,,  Advances  on  Securities  at  sundry  dates,  and 

Current  Accounts  5,623,069    7     7 

„   Bills  discounted 3,661,956  18  10 

,,   Bankers'    Guarantee    and    Securities    held 

against  Acceptances,  per  Contra       ...        ...        109,050    0    0 

,,    Bank    Premises  —  London,     Dublin,     and 

Branches,  Freehold  and  Leasehold 312,353    3    6 

£14,856,811  17    4 



The  National  Provincial  Bank  of  England,  Limited. 

This  bank  stands  out  unique  in  one  particular  that 
its  formation  was  in  contemplation  so  far  back  as 
1830 — but  only  in  contemplation.  It  was  not  "till 
three  years  later  that  its  capital  was  offered  to  the 
public,  and  its  reception  by  the  public  was  exceed- 
ingly gratifying,  for  in  April,  when  the  shares  were 
submitted  no  less  than  13,168  were  applied  for,  and 
of  this  large  number  the  directors  allotted  8,340  only. 
From  the  first  report  we  gather  that  the  Gloucester 
branch  was  opened  on  New  Year's  Day,  1834, 
a  branch  at  Brecon  on  the  26th  March  following, 
and  at  Walsall  on  14th  April,  while  arrangements 
were  then  being  made  for  establishments  at  Birming- 
ham, Wotton-under-Edge,  Boston  and  Wisbeach.  The 
statement  of  the  accounts  placed  before  the  pro- 
prietors OQ  the  8th  May,  1834,  showed  that  the 
paid-up  capital  then  amounted  to  £101,545.  This 
appears  almost  ludicrous  when  placed  side  by  side 
with  the  capital  as  it  stands  in  the  balance-sheet  of 


The  National  Provincial  had  grasped  the  great 
principle — the  whole  essence  of  joint-stock  banking — 
that  the  aggregate  of  a  number  of  small  balances 
was  quite  equivalent  to  that  of  few  large  ones.  They 
came  on  the  scenes  prepared  to  cater  for  the  people 
— the  masses — and  like  the  County  and  the  South- 
Western  (of  later  date)  they  did  so  most  successfully. 
The  idea  in  the  mind  of  the  directors  was  to  cater 
for  the  provinces,  and  this  they  did,  and  are  still 
doing.  The  name  of  the  National  Provincial  is 
a  household  word  in  most  of  the  leading  towns,  and 
many  of  the  principal  villages,  in  the  south  of 
England  and  the  Midlands.  But  in  addition  to  this 
the  name  of  the  bank  is  not  only  known,  but  held 
in  high  respect,  by  all  colonial  and  foreign  bankers. 
For  many  a  long  day  the  National  Provincial  stood 
head  and  shoulders  above  any  other  joint-stock  bank 
whose  figures  were  available,  purely  and  solely  by 
a  steady  increase  of  legitimate  business.  That  is  to 
say,  that  their  figures  have  not  been  inflated  by 
amalgamations  and  absorptions;  there  has  been  a 
continuous  steady  increase  of  business,  the  result  of 
confidence,  the  reward  of  continuous  steady  endeavour. 
Banks  have  risen,   flourished,   and  fallen :    there  have 


been  tight  corners — there  has  been  Black  Friday, 
there  has  been  the  Baring  crisis,  there  have  been 
the  curious  and  unexpected  variations  in  the  Bank  of 
England  rate,  there  have  been  many  disturbances  in 
the  foreign  markets — but  through  one  and  all  the 
National  Provincial  has  stood  its  ground,  and  not 
only  that,  it  has  come  out  of  the  ordeal  with  flying 
colours.  When  banks  were  stopping  payment  in  all 
directions  the  National  Provincial  held  its  own.  There 
was  no  stringency,  no  tightness  of  money :  the  lines 
on  which  the  bank  was  founded  and  worked  were  too 
strong,  too  secure  in  every  way.  The  principle  had 
been  laid  down  that  the  bank  was  to  work  on  joint- 
stock  lines,  the  business  was  for  a  class  hitherto  but 
very  inadequately  considered.  True,  there  were  spring- 
ing up  various  joint-stock  institutions,  but  the  National 
Provincial,  may  be  quite  unintentionally,  were  one  of 
the  early  pioneers.  They,  with  their  one  or  two  col- 
leagues, were  to  teach  Londoners  what  joint -stock 
banking  really  meant,  and  were  at  the  same  time  to 
fall  in  line  of  defence  against  the  private  bankers  who 
looked  upon  the  banking  field  of  London  as  sacred 
preserves  of  their  own,  within  which  none  but  the 
specially  favoured  might  enter,   and  over  the  threshold 


of  whose  Clearing  House  it  was  profanity  to  attempt 
to   step. 

The  second  report  of  the  bank  states :  "  The  estab- 
lishment in  its  formation  has  met  with  greater  diffi- 
culties than  any  similar  institution,  and  it  is  with 
no  ordinary  degree  of  satisfaction  that  the  directors 
have  to  congratulate  the  proprietors  that  those  are 
now  surmounted. 

**  The  unanimity  existing  among  the  directors  will 
enable  them  to  apply  their  undivided  attention  to  the 
proper  and  legitimate  business  of  the  company,  and 
it  is  gratifying  to  them  to  be  able  to  state  that, 
from  the  short  experience  they  have  had,  they  feel 
confident  that  the  expectations  originally  entertained 
by  the  proprietors   will  be   fully  realized." 

There  was  a  circular  issued  by  the  bank  to  which 
attention  should  be  called : 


**  29«/t  July,  1835. 
"The  great  features  which  distinguishes  a 
joint- stock  bank  from  a  private  banking  partner- 
ship is  the  unquestionable  security  which  it 
affords  to  the  public  for  its  notes,  deposits,  and 
engagements  of  every  description.     This  security 


is  obtained  in  the  first  place  by  the  responsi- 
bility of  the  shareholders  for  all  the  liabilities 
of  the  bank;  in  the  second  place  by  the 
amount  of  capital  of  the  company ;  and  in 
the  third  place  the  directors  are  called  upon 
annually  for  an  account  of  their  stewardship, 
and  to  declare  a  dividend  on  the  profits  they 
have  made,  and  it  is  beyond  .the  limits  of 
probable  villainy  or  possible  fraud  that  they 
should  do  this  otherwise  than  honestly.  .  .  . 
With  private  banks  in  this  country,  on  the 
other  hand,  undoubtedly  there  are  many  which 
realize  large  profits,  and  are  as  solvent  as  any 
bank  can  be,  but  the  public  has  no  evidence 
of  this." 

Perhaps  there  may  be,  and  probably  is,  a  vein  of 
truth  running  through  these  remarks,  for  they  seem 
to  have  been  penned  by  men  who  were  writing  in 
the  light  of  their  own  times,  but  the  expressions 
**  possible  fraud "  and  "  probable  villainy "  seem 
hardly  in  keeping  with  public  opinion  of  the  present 
day.  There  were  unquestionably,  and  probably  there 
are  now  in  the  fold  of  private  bankers  some  black 
sheep,   some  who   are    stemming    the    adverse    current 


of  constant  demands  by  subterfuge,  but  it  is  a  con- 
soling thought  that  they  are  few  and  far  between. 
At  the  same  time  there  are  some  provincial  banks 
running  very   close  indeed   to   the   wind. 

We  do  not  think  that  it  is  a  matter  of  general 
knowledge  that  although  the  bank  had  a  London  office 
from  the  very  first,  it  was  not  used  for  ordinary 
London  banking   business  till   1865. 

Keferring  to  our  previous  comment  anent  the  country 
and  provincial  business  which  the  bank  decided  to 
bid  for,  we  may  say  that  during  the  year  1884-35 
no  less  than  twelve  branch  establishments  were 
opened,  Bath,  Cardiff  and  Cheltenham  being  amongst 
the  number.  But  the  following  year  the  directors 
showed  far  more  distinctly  what  was  their  real  policy 
and  what  was  the  actual  value  they  placed  on  a  wide 
country  connection,  for  during  the  twelve  months  no 
less  than  thirty-five  branch  establishments  were  opened, 
amongst  which  were  those  at  Aberystwith,  Bristol, 
Leicester  and  Stowmarket.  At  Barnstaple  the  busi- 
ness of  the  North  Devon  Bank  was  taken  over ; 
and  the  directors  closed  the  branch  at  Walsall, 
"where  the  business  had  always  been  dangerous, 
and    where    a    large    portion    of    the    capital    of    the 


company  was  absorbed  which  could  be  much  better 
employed  in  other  quarters."  In  1837  the  business 
of  Messrs.  Skinner  &  Co.,  private  bankers,  was 
absorbed,  and  this  enabled  the  bank  to  be  repre- 
sented at  Stockton  and  Darlington,  while,  about  the 
same  time,  branches  were  opened  at  Devonport,  Ply- 
mouth, Kingsbridge,  Manchester,  Eamsgate,  Exeter 
and  Newcastle-Emlyn.  And  here  diverting  for  a 
moment  let  us  say  that  the  Manchester  branch  was 
opened  "  with  a  view,  in  the  first  instance,  of  facili- 
tating the  operations  of  the  other  branches  of  the 
company,  especially  those  in  North  Wales."  It  is  amus- 
ing to  read  this  extract  of  some  sixty-five  years  ago, 
and  then  glance  at  the  magnificent  building  which  so 
splendidly  represents  the  National  Provincial  Bank  of 
England  in  Manchester  to-day,  and  at  the  same  time 
to  bear  in  mind  that  the  directors  at  the  date  of 
its  establishment  expressed  the  hope  **  that,  at  a  fit- 
ting season,  it  may  be  very  serviceable  in  the  interests 
of  the  company."  And  here  we  cannot  omit  giving 
a  short  extract  from  the  fourth  report,  as  comparing 
things  of  to-day  with  those  of  long  ago,  the  contrast 
strikes  one  immediately.  On  the  date  of  the  fourth 
report  the  bank  had  fifty-six  offices,  and  the  directors^ 


stated  **  the  transfers  between  the  branches  average 
about  £60,000  a  week,  making  a  total  of  £8,000,000 
monthly !  " 

Compare  this  with  the  balance  due  on  current  and 
deposit  accounts  of  some  £51,000,000  to-day  1  The 
one   is   the   turn-over,   the  other  the  standing  balance. 

In  1888  the  Eugely,  Tamworth  &  Lichfield  Bank- 
ing Company  was  taken  over,  as  was  also  the  busi- 
ness of  Messrs.  Husband  &  Co.,  of  Devonport,  and 
that  of  Messrs.  Browse  &  Co.,  of  Brixham,  while 
branches  were   opened   at   Southampton   and   Portsea. 

In  the  report  for  1888  it  was  notified  that  the 
premises  in  Bishopsgate  Street  had  been  acquired  on 
favourable  terms,  and  it  was  there  that  the  next 
annual  meeting   of  the   shareholders   was  held. 

In  1841  the  business  of  Fryes,  Andrews  &  Co. 
was  acquired,  and  that  of  the  Dover  Bank  (Fector's), 
while  next  year  Cole,  Holroyd  &  Co.'s  business  (of 
Exeter)  was  taken  over.  In  1845  the  National  Pro- 
vincial absorbed  Loveband  &  Co.  (of  Torrington), 
Ley  &  Co.  (of  Bideford),  and  Pretor  &  Co.  (of  Sher- 
borne) ;  while  the  dissolution  of  the  Isle  of  Wight 
Joint- Stock  Bank  enabled  them  to  open  a  branch  at 
Newport.      Three  years  later  the   Stockton  &  Durham 


County  Bank  was  absorbed,  and  in  1854  the  private 
bank  of  Kennersley  &  Sons,  of  Newcastle-under-Lyme ; 
and  in  1859  that  of  WiUiam  Moore,  of  Stone.  In 
1867  the  business  of  Crawsbay,  Bailey  &  Co.,  of 
Newport,  was  taken  over,  and,  in  1870,  that  of 
Morris  &  Co.,  of  Carmarthen ;  while  seven  years  after- 
wards the  Bank  of  Leeds  was  absorbed.  Then,  so 
far  as  amalgamations  were  concerned,  the  bank 
remained  in  a  quiescent  state  till  1902,  when  the 
Enaresborough  &  Clare  Bank  was  taken  over,  which 
gave  the  National  Provincial  openings  and  estab- 
lished businesses  at  Harrogate,  Knaresborough,  Eipon, 
Wetherley,  Boroughbridge,  Pateley  Bridge  and  Mas- 
ham.  So  we  may  fairly  take  it  that  whereas  within 
the  last  fifteen  or  twenty  years  a  certain  set  of  banks 
have  been  increasing  their  figures  by  leaps  and  bounds, 
the  National  Provincial  have  "  stood  on  their  own 
bottom,"  and  to-day  can  hold  up  their  head  with  the 

A  word  or  two  as  to  the  capital.  In  1853  the 
paid-up  capital  was  £450,000,  By  subsequent  issues  of 
shares  the  paid-up  capital  was  increased  to  £1,080,000 
in  1866.  In  1874  this  item  stood  at  £1,350,000,  and 
in  1878  it  was  £1,687,500.    From  time  to  time  it  has 


been  increased  till  to-day  it  stands  at  the  magnificent 
sum  of  £3,000,000,  with  a  reserve  fund  of  no  less 
than   £2,300,000. 

With  regard  to  current  and  deposit  accounts  the 
first  figures  were  published  in  1867,  when  they  showed 
that  on  the  last  day  of  the  previous  December  this 
item  stood  at  a  little  over  £3,000,000.  In  1872  the 
total  exceeded  £20,000,000.  By  the  31st  December, 
1891,  the  item  amounted  to  more  than  £40,000,000, 
and  at  the  present  time  the  confidence  which  the 
public  has  in  the  establishment  is  clearly  demon- 
strated by  the  fact  that  more  than  £50,000,000  are 
entrusted  to   it. 

The  bank  was  registered  as  an  unlimited  company 
in  1873,  and  as  limited  in  1880.  In  1863  the 
directors  ''had  come  to  the  full  conviction  that  the 
interest  of  the  bank  required  that  its  operations 
should  be  extended  to  London  at  the  earliest  possible 
moment,"  and,  as  most  people  know,  the  suggestion 
was  at  once  acted  upon.  This  step  was  a  wise  one 
in  every  sense  of  the  word.  The  career  of  progress 
had  been  started  but  the  fulcrum  was  not  right : 
London  was  needed  as  the  pivot  round  which  all  the 
future   business   must   perforce   turn,  and  very   speedily 


the  directors  found  this  to  be  the  case.  A  fresh  era 
of  prosperity  was  commenced  ;  a  vista  of  further  pos- 
sibilities was  opened  up  which  the  then  directors  were 
not  slow  to  avail  themselves  of.  The  present  building 
in  Biehopsgate  Street  is  one  of  the  finest  in  London, 
but  though  the  bank  authorities  see  fit  to  assess 
"  Premises "  in  the  balance-sheet  at  an  absurdly  low 
figure,  every  business  man  knows  perfectly  w^ell  that 
in  the  item  *'  Bank  Premises "  the  bank  holds  another 
magnificent  reserve  fund — to  be  touched  only  in  the 
direct  case  of  necessity — but  still  there. 


We    append    hereto    the    balaaice-sheet,   shewing  the 
accounts  of  the  bank  on  the  31st  December,  1904  : — 

Liabilities,  £         s.    d. 

Capital : — 

40,000  Shares  of  £75  each,  £10  10s.  paid       ...       420,000    0    0 

215,000      „  £60    „      il2  „  ...     2,580,000    0    0 

3,000,000    0    0 

Reserve  Fund 2,300,000    0    0 

Current,  Deposit,  and  other  Accounts,  including 
rebate  on  Bills  not  due,  provision  for  bad  and 
doubtful  debts,  etc 50,693,477  14    6 

Acceptances  and  Endorsements  of  Foreign  Bills 

on  Account  of  Customers 390,578    0    0 

Profit  and  Loss  Account : — 

Balance  of  Profit  and 
Loss  Account,  including 
£83,288  5s.  4d.  brought 
from    year    1903      £631,476  18    0 

Less  Interim  Divi- 
dend, 8  per 
cent,  paid  in 
August  last... £240, 000    0    0 

„  Dividend  of 
9  per  cent, 
payable  8th 
February  next  270,000    0    0 

,,   Transferred  to 
Limited,  pur- 
chase A/c.  ...      20,000    0    0 

,,  Transferred  to 
A/c.  ...      15,000    0    0 

545,000    0    0 

86,476  18    0 

£56,470,532  12    6 


Assets.  £         s.    d. 

Casli  :— 

At  Bank  of  England  and  at  Head  Office  and 

Branches 7,820,752  13    4 

„  Call  and  Short  Notice 3,648,850  17    6 

11,469,603  10  10 

Investments : —  £  s.   d. 

English  Government  Securi- 
ties    8,811,833  18    3 

Indian  and  Colonial  Govern- 
ment Securities ;  Deben- 
ture, Guaranteed  and  Pre- 
ference Stocks  of  British 
Railways ;  British  Corpora- 
tion and  Waterworks  Stocks  5,116,312     1     2 

Canal,  Dock,  River  Conser- 
vancy, and  other  Invest- 
ments         517,678    4    4 

14,445,824    3    9 

Customers  for  Acceptances  and  Endorsements  of 

Foreign  Bills,  per  Contra 390,578    0    0 

Bills  Discounted,  Loans,  etc 29,517,452    2     2 

Bank  Premises  in  London  and  Country 647,074  15    9 

£56,470,532  12    6 



Parr's   Bank,   Limited. 

This  is  one  of  the  great  amalgamating  banks  in  the 
country,  although  for  some  considerable  time  it  has 
remained  in  a  quiescent  state,  content  in  developing 
the  various  businesses  already  secured.  Coming  to 
London  with  all  the  keenness  of  Lancashire  it  soon 
made  its  advent  felt  and  its  influence  recognised, 
thanks  mainly  to  the  indomitable  energy  and  enter- 
prise of  its  then  general  manager,  Mr.  John  Dun. 

The  history  of  the  institution  is  somewhat  inter- 
esting. In  the  days  of  old  it  frequently  chanced  that 
merchants  in  London,  but  more  especially  in  the  pro- 
vinces, added  to  their  other  business  that  of  banker 
to  a  limited  extent.  When  roads  were  not  safe,  when 
highwaymen  and  footpads  were  abroad,  it  was  by  no 
means  wise  to  travel  after  sunset  with  any  consider- 
able sum  of  money  on  the  person.  Hence  it  was 
that  many  tradesmen  and  merchants,  to  oblige  their 
customers,  volunteered  to  keep  their  money  for  them, 


and  so  popular  did  this  practice  become  that  the 
holder  would  often  offer  a  small  rate  of  interest  as 
an  inducement  to  the  customer  to  leave  his  money 
longer,  and  to  deposit  still  more.  It  will  be  remem- 
bered that  the  original  bank  of  Coutts  &  Co.  started  in 
this  way,  while  the  world-known  firm  of  Barclay  &  Co. 
is  said  to  have  been  founded  indirectly  by  a  trades- 
man of  London,  and  the  old  firm  of  Smith,  Payne,  & 
Smiths — but  recently  amalgamated  with  the  Union — 
dates  back  to  a  Nottingham  draper.  Many  other  of 
the  old  banks  were  founded  in  the  same  manner. 
It  was  thus  that  Parr's  was  established  in  Warring- 
ton, but  there  is  a  good  deal  of  uncertainty  as  to  the 
date  of  its  origin.  Well-known  and  highly  respected 
as  were  the  members  of  the  firm,  the  new  departure 
met  with  great  public  approval  and  ready  support; 
and,  even  to-day,  there  is  no  banking  institution  better 
known  or  more  respected  in  that  part  of  England  than 
Parr's.  The  banking  department  having  progressed  so 
satisfactorily,  a  limited  company  was  formed  in  1865, 
with  a  capital  of  £1,000,000,  divided  into  10,000  shares 
of  £100  each,  of  which  £10  per  share,  or  £100,000, 
was  paid-up,  to  take  over  that  part  of  the  business. 
A  few  months  afterwards  the  new  company — Parr's 
Banking  Company — bought  the  old  established  business 


of  Thomas  Firth  &  Son,  of  North wich ;  and,  two  years 
later,  that  of  the  Metropolitan  &  Provincial  Bank,  of 
Macclesfield.  These,  however,  were  only  the  prelude 
to  what  was  to  follow.  Having  once  became  fairly 
established  the  next  point  was  to  strengthen  the 
position  by  increasing  the  amount  of  capital,  so  as 
to  cope  with  the  increasing  business.  In  1871  a  call 
of  £5  per  share  was  made ;  and  three  years  after- 
wards, another  call  for  a  like  amount.  At  that  time 
4,500  new  shares  were  issued,  owing  to  the  purchase 
of  the  business  of  Woodcock,  Sons  &  Eckersley.  As 
amalgamations  were  effected  the  capital  was  from  time 
to  time  increased,  and  the  reserve  fund  was  pro- 
portionately increased,  until  to-day  the  total  sub- 
scribed is  represented  by  ^68, 542, 500,  and  the  amount 
paid-up  by  ^61,708,500,  while  the  reserve  fund  stands 
at  a  similar  substantial  sum. 

In  1877  Parr's  took  over  the  private  bank  of 
F.  W.  Jennings,  of  Leek;  in  1878,  Dixons  &  Co., 
of  Chester ;  and  in  1883  the  National  Bank  of 
Liverpool  was  absorbed.  The  bank  having  greatly 
strengthened  its  position  in  the  north,  the  next 
thing  was  to  make  a  move  south,  and  all  eyes 
were  turned    on    London.      Every    bank    director  and 


manager  of  a  clearing-bank  knew  perfectly  well  that 
all  Parr's  was  waiting  for  was  an  opening,  since 
for  Mr.  John  Dun  to  have  made  up  his  mind  to 
carry  through  any  project  it  might  be  considered  as 
good  as  accomplished.  It  was  not  long  before  it 
became  known  that  Parr's  had  actually  achieved  their 
ambition.  An  extraordinary  general  meeting  of  the 
shareholders  was  held  at  Warrington  on  25th  July, 
1891,  when  the  chairman  said,  ''The  total  turnover 
of  the  bank  amounted  to  a  large  sum  in  the  past 
year,  and  of  this  amount  rather  more  than  one-half 
passed  through  London ;  and  it  is  partly  for  this 
reason,  and  partly  also  in  order  to  take  the  place 
which  we  believe  our  large  transactions  and  impor- 
tant banking  position  fully  warrant,  to  secure  the 
advantages  of  a  share  of  London  business,  an  open- 
ing to  the  London  market  for  the  employment  of 
surplus  funds,  admission  to  the  London  Clearing 
House,  and  to  obtain  greater  capability  for  giving  in- 
creased facilities  to  our  commercial  friends  in  Warring- 
ton, Liverpool,  and  elsewhere,  that  your  directors 
have  for  some  time  past  considered  it  desirable  to 
seek  an  opportunity  for  an  union  with  some  good 
bank  in  the  city   of  London,  whereby  the  objects  they 


had  in  view  might  be  attained,  and  they  have  now 
the  honour  and  pleasure  of  announcing  that  an 
arrangement  for  an  amalgamation  has  been  concluded 
between  the  partners  of  the  very  old  established  and 
much-respected  banking  firm  of  Fuller,  Banbury, 
Nix  &  Co.,  of  77  Lombard  Street,  London,  and 
Parr's  Banking  Company,  whereby  your  bank  obtains 
entrance  to  London,  and,  by  means  of  a  first-class 
connection  in  the  city,  will  command  all  the  advan- 
tages I  have  enumerated,  besides  many  others  which 
such  a  position  may  be  expected  to  afford."  Such 
was  the  announcement.  London  bankers  were  in  no 
way  surprised,  they  had  expected  something  of  the 
kind,  although  few  thought  that  little  Fullers  would 
have  been  the  house  selected.  As  Fuller's  had  for 
many  a  long  year  enjoyed  a  seat  in  the  House, 
Parr's  naturally  inherited  it.  But  all  the  London 
bankers  were  cognizant  of  one  thing:  they  had  now 
in  their  midst  a  most  capable  and  formidable  rival, 
and  it  would  be  incumbent  upon  them  to  put  out 
all  their  powers  if  they  did  not  want  to  be  left 
behind  in  the  running.  All  knew  that  Parr's  had 
come  to  stay,  and  that  the  management  were  deter- 
mined   to    forge    their    way    ahead.       Few    were    pre- 


pared  for  the  announcement  in  1892  that  Parr's  had 
secured  the  Alhance,  a  most  important  joint-stock 
bank  with  a  very  extensive  stock  exchange  connec-. 
tion,  as  well  as  a  very  wide  general  business.  The 
advantage  of  this  connection  was  patent  to  every 
financial  man — Parr's  had  obtained  by  this  move  an 
admirable  output  for  any  surplus  funds  they  might 
at  any  time  wish  to  loan.  The  premises  of  the 
AUiance  were  extensive,  the  position  in  Bartholmow 
Lane  and  close  by  Capel  Court,  and  in  the  heart 
of  the  stock-broking  world,  magnificent.  The  name 
was  then  changed  to  Parr's  Banking  Company  &  the 
Alliance  Bank,  Limited — a  title  as  un wieldly  as  it 
was  unnecessary.  Little  or  no  wonder  was  expressed 
when  some  few  years  later  this  cumbrous  nomencla- 
ture was  altered  to  Parr's  Bank,  Limited.  The  general 
public  is  not  by  any  means  in  favour  of  long  rig- 
maroles as  the  designation  of  firms,  and  experience 
shows  that  the  shorter  the  title  the  more  it  is 

In  1894  Parr's  was  fortunate  in  arranging  terms 
of  amalgamation  with  the  old  and  highly  respected 
private  bank,  Sir  Samuel  Scott,  Bart.,  &  Co.,  of 
Cavendish   Square ;    and   in  the  same  year  the  private 


bank  of  Shrubsole  &  Co.,  of  Kingston-on-Thames, 
was  purchased.  This  was  a  comparatively  small  insti- 
tution, but  very  sound,  and  with  a  remarkably  good 
reputation.  Two  years  later  the  business  of  the 
Consolidated  Bank,  in  Threadneedle  Street,  was  pur- 
chased, thus  gaining  Parr's  a  further  fine  stock 
exchange  connection.  Two  years  later  the  Derby  & 
Derbyshire  Banking  Company,  Limited,  was  absorbed. 
In  1900,  by  a  capital  stroke  of  business,  Parr's  took 
over  Dumbell's,  of  the  Isle  of  Man,  practically  the 
bank  of  the  island,  and  in  1902  a  splendid  new 
footing  in  Leicestershire  was  obtained  by  the  absorp- 
tion of  Fare's  Leicestershire  Banking  Company,  Limited. 
The  reserve  fund  of  a  bank  we  consider  a  most 
important  item,  and  with  regard  to  Parr's  it  is 
interesting  to  note  that,  started  in  1865  with  £1,000, 
it  was  continuously  and  steadily  increased  year  by 
year.  In  1871  it  reached  £54,921,  when  £45,921  was 
written  off  the  purchase  account.  The  following  year 
the  additions  made  brought  the  fund  up  to  £25,000, 
and  ever  since  continuously  additions  have  been  made 
with  the  result  that  to-day  the  amount  of  the  reserve 
equals  the  paid-up  capital.  When  the  amalgamation 
took    place    with    the    Alliance    in    1892,    the    reserve 


fund  was  increased  to  £1,000,000 — now  it  stands  at 
£1,708,600,  a  figure  which  should  put  to  rest  the 
minds  of  all  shareholders  so  far  as  the  stability  of 
the  bank  is   concerned. 

We  have  not  a  copy  of  the  first  published  balance- 
sheet  of  the  bank  before  us,  but  we  are  in  a  position 
to  give  the  most  important  items.  For  1866  the 
figures  were: 

Capital  issued       £1,000,000 

Capital  paid-up 100,000 

Reserve  Fund       fiil 

Deposit  and  Current  Accounts...  906,661 

Acceptances          ...         ...         ...  1,208 

Purchase  Account           100,000 

Balance  of  Profit  and  Loss      ...  11,304 

Cash  in  hand,  at  Bank  of  Eng- 
land, and  at  Call  and  Short 
Notice  160,631 

Investments  67,948 

Bills  Discounted  and  Loans      ...  839,086 

Preliminary  Expenses     862 

Bank  Premises  and  Furniture  ...  6,677 

After  glancing  at  these  ^figures  it  will  be  of 
interest    to    look   at    the   last   published   balance-sheet, 


and  make  a  comparison.  After  forty  years  of  work 
the  bank  published  the  following  statement  as  record- 
ing their  position  on  the   81st  December,   1904 : — 

Gbneeal  Balancb,  3l8T  Dbcbmbbr,  1904. 

Capital— 85,425  Shares  of  £100 
each £8,542,500    0    0 

s.    d. 

To  Amount  paid  up — £20  per 
Share  on  85,425  Shares  .. 

,,   Reserve  Fund         

,,  Due  by  the  Bank  on  Cur- 
rent Accounts,  Deposit 
Accounts,  Deposit  Re- 
ceipts, and  Circular  Notes 

,,  Notes  in  circulation  in  the 
Isle  of  Man 

,,  Drafts  Current  (payable 
within  21  days),  Custo- 
mers' Acceptances  advised, 
etc.  .»         

,,  Acceptances  on  behalf  of 

,,  Foreign  BiUs  Negotiated... 

,,  Dividend  to  be  now  paid... 

,,  Bonus  of  1  per  cent, 

^.  Bank  Premises  Account  ... 

„  OflOlcers'  Pension  and  Pro- 
vident Fund  

,,  Balance  of  Profit  and  Loss, 
carried  forward    ... 


0  0 
0    0 

,492,243  17 


9,578    0 


365,831  11 



8    3 

162,307  10 



3  6 
0  11 

17,085    0 
10,000    0 


5,000    0 


75,647  17 


270,040    7    7 
£36.128.578    0    3 



d6        s.    d.  £        s.    d. 

By  Cash  on  hand  and  at  Bank 

of  England 4,764,414    0    0 

,,  Money  at  call  and  short 

notice         5,858,652  14    7 

10,623,066  14    7 

„   £1,000,000  Consols  at  85  ...        850,000    0    0 

„  Other  Imperial  Govern- 
ment Securities  (of  which 
£240,000  lodged  as  security 
for  Public  Accounts  and 
tho  Note  Issue  in  the  Isle 
of  Man)  British  Railway 
Debenture  and  other  first- 
class  Stocks  2,317,619  18     * 

3,167,619  18     4 

18,790,686  12  11 

„   Bills  Discounted 2,884,713    1    2 

,,  Loans  and  Advances  to 
Customers,  after  deduct- 
ing provision  for  ail  bad 
and  doubtful  debts,  etc. ...  15,543,354  15    8 

,,  Acceptances  on  behalf  of 

Customers,  as  per  contra  3,531,052     3     6 

,,    Foreign  Bills  Negotiated, 

as  per  contra        42,832    0  11 

„  Bank  Premises  and  Furni- 
ture          835,939     6    1 

£36,128,578    0    3 

When  the  first  report  was  issued  the  bank  had 
branches  at  Northwich,  Euncorn,  St.  Helen's,  Widnes, 
and  Winsford.  In  1891  the  head-office  was  removed 
from  Warrington  to  London,  Lombard  Street,  and  when 
the  amalgamation  with  the  Alliance  took  place  it  was 
again    removed    to    Bartholomew    Lane,    the    premises 

187  N^^gAUFO^S^ 

there  being  only  recorded  as  the  registered  office.  At 
the  present  time  the  bank  has  branches  in  all  the 
important  or  rising  London  suburbs,  as  well  as  a  splen- 
did country  connection.  The  directors  and  managers 
of  this  bank  have  achieved  their  ambition  ;  they  have 
succeeded  in  making  Parr's  a  power  in  the  financial 
world,  an  institution  whose  opinion  carries  great 
weight,  a  rival  which  has  worked  its  way  steadily 
upwards  till  it  to-day  holds  the  proud  honour  of 
being  one  of  the  first  six  banks  in  the  country. 



Messrs.  Eobarts,  Lubbock  &  Co. 

Year  by  year,  for  a  long  time  past,  the  private 
"banks  in  this  country  have  been  steadily  decreasing 
in  number  owing  mainly  to  amalgamation,  absorption 
or  purchase.  Since  some  of  the  joint- stock  banks  in 
the  provinces  were  able  to  get  into  London  and 
obtain  a  seat  in  the  Clearing  House  there  has  been 
a  steady  tide  of  absorption  flowing,  each  bank  having 
a  deeply  rooted  idea  that  it  must  attain  as  quickly 
as  possible  a  topmost  position  amongst  the  joint-stock 
banks  in  the  metropolis.  The  three  greatest  rivals 
in  this  direction  have  been  Lloyds,  Parr's,  and  the 
London,  City  &  Midland,  with  the  Metropolitan  of 
England  and  Wales  and  the  Capital  &  Counties 
following  in  the  rear.  Not  only  the  joint- stock  but 
private  banks  have  come  under  the  sway  of  the  great 
amalgamators.  Of  the  private  banks,  all  of  which  had 
seats  in  the  Clearing  House,  there  have  disappeared 
in  comparatively  recent  years,  Messrs.  Barclay  &  Co., 
Messrs.    Barnett,    Hoares    &    Co.,   Messrs.    Bosanquet, 


&  Co.,  Messrs.  Dimsdale,  Fowler  &  Co.,  Messrs. 
Fuller,  Banbury  &  Co.,  Messrs.  Prescott  &  Co., 
Messrs.  Smith,  Payne  &  Smiths.  In  addition  to 
these,  Messrs.  Glyn  &  Co.  have  registered  themselves 
as  an  unlimited,  and  Messrs.  Martin  &  Co.,  as  a 
limited  company.  Thus  it  is  that  at  the  present 
moment  Messrs.  Eobarts,  Lubbock  &  Co.  have  the 
proud  distinction  of  being  the  sole  remaining  purely 
private  bank  in  the  "  House."  In  1854,  when  first 
the  joint-stock  banks  were  admitted,  the  number  of 
private  firms  already  enjoying  seats  was  twenty-five. 
The  last  of  the  old  private  banks  in  London  to 
succumb  to  the  wiles  and  fascinations  of  the  amalga- 
mator was  the  highly  respected  and  very  old  house  of 
Smith,  Payne  &  Smiths.  So  that  the  subject  of  this 
chapter  is  now  the  only  survivor  of  all  the  old 
private  banks  in  the  City,  and  can  date  its  origin 
as  far  back  as  1772.  It  has  held  its  own  for  more 
than  130  years  in  spite  of  the  many  financial  crises 
which  have  occurred  during  that  long  period;  it  has 
faced  all  the  keen  competition  of  the  joint-stock  insti- 
tutions of  to-day,  and  it  has  refused  all  tempting 
suggestions  to  sink  its  identity  by  purchase  or  absorp- 
tion   by   any   of    the    joint-stock    banks   be    the    offers 


never  so  tempting.  Other  equally  old,  or  even  older 
houses  have  succumbed  to  the  wiles  of  the  tempter, 
but  the  firm  of  Kobarts,  Lubbock  seems  as  though 
it  could  easily  be  in  the  running  in  a  century  hence, 
as  it  is   to-day. 

The  bank  was  established  as  far  back  as  1772,  it 
being  started  on  February  5th  of  that  year  at  11 
Mansion  House  Street,  under  the  name  of  Messrs. 
Lemon,  Buller,  Furley,  Lubbock  &  Co.  Two  years 
later  the  name  appears  in  the  list  of  bankers  as  at 
the  address  14  Abchurch  Lane;  but  the  change  could 
only  have  been  temporary,  as,  in  1776,  the  firm  was 
conducting  business  at  11  Mansion  House  Street  as 
before,  the  title  then  being  Sir  William  Lemon,  Buller, 
Furley,  Lubbock  &   Co.     Thus  it   continued  till  1782. 

In  1785  Sir  William  Lemon's  name  disappears,  and 
Mr.  Bosanquet  joins  the  firm,  the  title  then  appear- 
ing as  Forster,  Lubbock,  Bosanquet  &  Co.  A  Mr. 
Bosanquet  appears  to  have  been  connected  with  the 
bank  till  1800,  when  he  left,  and  entering  into  part- 
nership with  Messrs.  Beachcroft  &  Beeves,  opened  a 
banking  house  at  78  Lombard  Street,  under  the  name 
of   Bosanquet,   Beachcroft  &  Beeves. 

In  1801  the  name  ♦•Lubbock"  appears  as  "  Lub- 
bocks,"   from  which  one  infers   that  other  members  of 


the  family  must  have  joined  the  firm,  which  was  then 
styled  Forster,  Lubbocks,  Forster  &  Clark — the  name 
Clark  then  appearing  for  the  first  time.  In  1812 
another  of  the  Forster  family  seems  to  have  been 
elected  a  partner,  as  the  title  of  the  firm  at  that 
date  was  Forster,  Lubbocks,  Forsters  &  Clark. 

Two  years  later  another  change  took  place  in  the 
name,  as  it  is  given  as  Lubbock,  Sir  John,  Bart., 
Lubbock,  Forsters  &  Clark.  In  1820  the  house 
was  known  as  that  of  Sir  J.  W.  Lubbock,  For- 
ster &  Clark.  The  name  of  Clark .  disappeared  in 

In  1860  an  amalgamation  took  place  between  this 
house  and  that  of  Eobarts,  Curtis  &  Co.,  and  from 
that  time  business  has  been  carried  on  at  15  Lom- 
bard Street. 

A  word  or  two  about  Eobarts,  Curtis  &  Co. 
This  firm  first  appears,  under  date  1792,  as  Eobarts, 
Curtis,  Were,  Hornyold,  Berwick  &  Co.,  carrying  on 
business  at  86  Cornhill,  City,  but  five  years  later 
they  removed  to  15  Lombard  Street.  In  1799  the 
name  Berwick  does  not  appear  in  the  title  of  the 

In  1802  the  list  of  bankers  gives  Eobarts,  Curtis, 
Hornyold    &    Co.,    as    of    18    Exchange    Alley ;     but, 


three  years  later,  business  was  again  conducted  at 
15  Lombard  Street,  under  the  title  of  Eobarts,  Curtis, 
Bobarts  &  Curtis.  The  name  was  again  changed 
in  1818  to  Sir  William  Curtis,  Eobarts  &  Curtis. 
Another  change  took  place  in  1854,  when  the  firm's 
designation  was  altered  to  Eobarts,  Curtis  &  Co. 
This  title  was  retained  till  1860,  in  which  year  an 
amalgamation  was  effected  with  Lubbock,  Forster  &  Co. 
Two  years  later  the  title  of  the  bank  was  again 
altered,'  this  time  to  Eobarts,  Lubbock  &  Co.,  the 
title  it  enjoys   at   the  present  time. 

At  the  present  time  the  partners  of  the  firm   are  : 

The  Eight  Hon.  the  Lord  Avebury. 

Abraham  John  Eobarts,  Esq. 

William  Cotton  Curtis,  Esq. 

Henry  James  Lubbock,  Esq. 

Beaumont  William  Lubbock,  Esq. 

Cecil  Chaplin,  Esq. 

Thomas  Edward  Eobarts,  Esq. 

Hon.  John  Birkbeck  Lubbock. 

George  Cotton  Curtis,  Esq. 
That   these  gentlemen  are  admirably   adapted  to  the 
important   position   they   hold    there    can    be    no   ques- 
tion,  since,   as    we    have    already    stated,    the    history 


of  the  bank  shows  a  continuous  progress.  This  can 
be  readily  seen  by  a  glance  at  the  appended  copy 
of    the  last  published  balance-sheet. 

Balanob-Shbet,  SlsT  January,  1905. 

Liabilities.  £          8.   d. 

iTo  Paid-up  Capital  and  Eeserve  Fund 500,000    0    0 

„  Current  and  Deposit  Accounts        3,585,455  12    7 

,,  Acceptances  against  Approved  Securities  ...  70,070    1     6 

£4,155,525  14    1 

Assets.  £  8.   d. 

By  Cash  in  hand  and  at  Bank  of  England     ...  855,585  19    3 

„   Cash  at  Call  and  at  Short  Notice 1,002,700    0    0 

,,   Consols  2i  per  cent.  Stock 

£400,000  at  85 340,000    0    0 

,,   Transvaal  8  per  cent.  Stock 

£100,000  at  97       97,000    0    0 

437,000    0    0 

,,  Indian  and  Colonial  Government  Securities 

and  English  Corporation  Stock     141,412  15    4 

,,   English  Railway  Debentures  and  Prefer- 
ence Stocks  and  other  Investments  ...  159,227    8    9 

,,   Bills  Discounted,  Loans  and  Advances  to 

Customers        1,359,783    6    7 

,,   Liability  of  Customers  for  Acceptances  per 

Contra 70,070    1    6 

„   Freehold  Bank  Premises       129,746    2     8 

£4,155,525  14    1 

And  now  a  word  or  two  about  Lord  Avebury,  the 
head  of  this  old,  influential  and  respected  banking- 
house.      He  was  bom  80th   April,  1884,  and  educated 


at  Eton.  He  succeeded  as  fourth  baronet  in  1866. 
In  every  respect  he  is  one  of  the  most  remarkable 
men  of  his  time :  his  fame  is  world  wide.  He  is 
one  of  the  leading  lights  in  the  financial  firmament, 
to  whom  all  bankers  turn.  Nor  is  it  in  the  bank- 
ing world  alone  that  he  stands  out  pre-eminent. 
Amongst  the  scientists  and  men  of  letters  he  is 
regarded  as  one  on  the  topmost  rungs  of  the  ladder 
of  fame.  His  deep  thought,  his  great  capacities  for, 
and  patience  in  investigating  small  things,  and  his 
remarkable  ability  in  publishing  the  result  of  his 
deep  and  astute  researches  in  an  unusually  easy 
style  have  made  his  books  on  everyday  subjects 
exceedingly  popular.  The  young  men  of  to-day  when 
they  are  starting  in  business  cannot  possibly  do 
better  than  read  and  carefully  think  over  his  advice 
on  work,  rest,  and  recreation.  On  all  banking  matters 
he  has  for  many  years  past  been  regarded  as  one  of 
the  greatest  authorities  of  the  period,  and  in  every- 
thing connected  with  finance  generally  he  is  equally 
at  home.  He  is  the  head  of  the  largest  financial 
institution  in  the  world — the  London  Bankers'  Clear- 
ing House — he  is  chairman,  also,  of  the  London 
Bankers'   Association,   and  of   the   Central    Association 


of  Bankers.  He  was  unanimously  elected  some  twenty- 
one  years  ago  president  of  the  Bank  Clerks'  Orphan- 
age,  an   ofiBce   which   he   has   ever   since  occupied. 

lu  1900  he  was  created  Baron  Avebury,  of  Ave- 
bury,    Wilts. 

He  is  a  trustee  of  the  British  Museum ;  hon. 
D.C.L.  of  Oxford;  hon.  LL.D.  of  Cambridge,  Dublin 
and  Edinburgh;  hon.  M.D.,  "Wiirzburg;  president  of 
the  Linnean  Society,  of  the  London  Chamber  of 
Commerce;  vice-president  of  the  Boyal  Society; 
a  J.P.  and  D.L.  for  Kent;  a  Lieutenant  for  the 
City  of  London ;  a  Commander  of  the  Legion  of 
Honour;  and  for  some  time  chairman  of  the  London 
County  Council.  For  many  years  he  has  been  a  privy 

We  have  here  given  only  a  few  of  the  distinctions 
enjoyed  by  his  lordship,  and  have  omitted  altogether 
the    honours    conferred   on   him    by    foreign   countries. 

With  the  people  he  is  best  known  as  Sir  John 
Lubbock,  whose  name  has  and  always  will  be  con- 
nected with  bank-holidays.  It  is  quite  possible,  nay 
more  than  probable,  that  when  Sir  John  introduced 
his  bill  into  the  House  he  had  no  idea  how  far 
reaching    would    be    its    effects.      The    House,    always 


attentive  to  anything  that  fell  from  his  lips,  listened 
in  astonishment.  The  usual  course  of  discussion  took 
place,  and  in  due  course  the  bill  was  passed  and 
entered  on  our  statute  books.  It  very  soon  became 
apparent  that  it  affected  rich  and  poor  alike — the 
wealthy  banker  or  merchant  had  his  day's  holiday, 
so  did  the  office-boy  and  the  factory-girl ;  the  govern- 
ment officials  and  the  stockbrokers  had  a  holiday, 
HO  did  the  typeists,  the  shop-girls,  and  the  dress- 
makers. It  was  a  grand  idea — nobly  conceived  and 
ably  carried  out.  It  is  now  compulsory  that  many 
hundred  of  thousands  of  toilers  should  have  each  year 
a  certain  few  days  rest,  which  in  many  instances  they 
would  never  have  obtained.  And  for  this  the  name 
of  Sir  John  Lubbock  (Lord  Avebury)  is  held  in  deep 
affection   all   over  the   country. 

It  is  with  regret  we  cannot  give  a  fuller  and 
more  detailed  account  of  this  old  house  which  was 
founded  in  the  years  of  long  ago,  when  the  idea  of 
joint-stock  banking  had  not  even  been  conceived, 
when  the  bankers  of  London  were  simply  "gold- 
smiths  kepeing  running  cashes." 



The  Union  of  London  &  Smiths  Bank. 

Few,  if  any,  banks  Lave  been  so  prominently  before 
the  public  during  recent  years  as  this  great  institu- 
tion, whose  head  office  occupies  one  of  the  finest, 
if  not  the  finest  position  in  London.  A  magnificent 
stately  stone  building,  it  stands  at  the  corner  of 
Princes  Street  and  Cheapside,  facing  the  Old  Lady 
of  Threadneedle  Street,  looking  down  upon  the 
Mansion  House,  at  the  meeting  of  seven  main  roads — 
Princes  Street,  Threadneedle  Street,  Cornhill,  Lombard 
Street,  King  William  Street,  Cheapside,  Queen  Vic-' 
toria  Street,  as  well  as  other  thoroughfares  of  minor 
degree.  But  the  business  is  as  important  as  the 
building  in  which  it  is  conducted,  since  after  many 
years  of  comparative  quiescence  the  Union  of  late 
years  has  wakened  up  to  the  importance  of  its 
position  in  the  banking  world,  and  has  recognized 
the  weight  of  its  responsibilities,  and  consequently, 
has  started  quite  a  new  era  of  activity  with  apparently 
the  view   of    keeping  pace   with  the  rapid   strides  the 


banking  world  is  making,  and  determined  not  to  lose 
its  place  in  the  running,  but  to  maintain  its  position 
against  the  terribly  keen  competition  of  to-day.  As 
things  are  now  there  is  no  standing  still,  no  resting 
on  one's  oars,  one  must  either  swim  with  the  tide  or 
be  hopelessly  stranded  in  the  course  of  time.  When 
the  Union  wakened  up,  the  directorate  realized  their 
position,  they  put  new  fire  into  their  work,  they 
made  up  their  minds  they  would  hold  their  own, 
and  would  not  tolerate  the  idea  of  the  younger  insti- 
tutions supplanting  them  in  the  world's  opinion,  and 
so  determined  to  launch  out  on  quite  different  lines. 
They  would  no  longer  be  content  with  the  limited 
scope  of  their  already  great  business;  there  were  fields 
hitherto  practically  untrodden,  they  must  enter  them. 
Although  the  tide  of  amalgamation  was  very  strong, 
and  almost  at  flood,  there  were  even  j^et  many 
thoroughly  sound  and  very  old  institutions  which  had 
not  listened  to  the  seductive  voice  of  the  charmer. 
Perhaps  they  could  play  a  more  attractive  and  allur- 
ing tune :  if  so,  why  should  they,  too,  not  join  the 
ranks  of  the  progressives  ?  The  result  was  long  in 
coming,  but  it  is  with  us  now,  as  we  shall  presently 


The  Union  is  one  of  the  oldest  of  the  joint-stook 
banks  in  the  metropolis.  It  was  founded  on  4th  Feb- 
ruary, 1839,  with  a  capital  of  £3,000,000  divided 
into  60,000  shares  of  ^650  each,  of  which  42,290  were 
issued,  and  £5  per  share  was  paid.  Two  years  later 
a  call  of  £5  per  share  was  made.  The  remainder 
were  reserve  shares,  and  were  issued  at  a  premium 
of  £5  per  share  in  1854.  In  1860  a  portion  of 
the  reserve  fund  was  capitalized,  £2  being  credited 
to  the  amount  paid  on  each  share.  The  year  1860 
is  one  which  the  bank  will  never  forget,  as  it  is 
"writ  large"  in  its  annals  by  reason  of  the  great 
**Pullinger"  frauds.  PuUinger  was  at  that  time  the 
chief  cashier  of  the  bank,  a  position  which  he  had 
long  held,  and  it  was  in  1860  that  it  was  discovered 
that  he  had  embezzled  something  like  a  quarter  of 
a  million  pounds  sterling.  On  this  discovery  being 
made  the  directors  acted  with  courage  and  energy. 
The  blow  was  a  heavy  one,  could  its  effects  be 
moderated  ?  Again,  was  it  not  the  right  of  the 
proprietors  of  the  bank — the  shareholders — to  be  told 
bad  news  as  well  as  good?  The  board  soon  arrived 
at  a  decision :  a  circular  was  sent  round  to  the 
shareholders  informing  them  not  only  of    the  magni- 


tude   of   the   loss,  but  also   the   plan   by  which   it  was 
proposed  to   meet  it.      There  can  be  no  question  that 
this  prompt   action    on    the   part   of    the    management 
redounded    to   the    credit  of    the   bank.      The  fearless 
manner    in    which    a    catastrophe    was    met,   although 
causing    a    feeling   of    regret   on    behalf  of    the   share- 
holders, confirmed  them   in   their  high   opinion   of  the 
management    by    the    way    in    which    they    faced    the 
tremendous    loss.      The    circular    stated    that    it    was 
intended  to   meet  the  loss    in   the    following    manner: 
The     Amount     Credited    out    of 
Profit    on    Capital    Account, 
as   stated  was  withdrawn  ...         £120,000 

Written  off  Keserve  Fuud         ...  100,000 

Taken   from  current  Profits,    say,  30,000 

Total,  pay,         £250,000 

That  the  course  adopted  by  the  directors  was  a  wise 
one  was  amply  demonstraled  by  the  immediate  results. 
Instead  of  the  credit  of  the  bank  being  decreased  it 
was  greatly  enhanced,  and  the  customers,  who  had 
experienced  a  nasty  shock,  were  more  than  reassured, 
and  the  business  of  the  Union,  instead  of  decreasing, 
steadily  progressed  to   such  an   extent    that    after    the 


lapse  of  two  years  no  less  a  sum  than  £120,000 
was  re-credited  to  capital  account.  Thus  each  share 
at  that  time  was  credited  with  £15  paid.  During 
1864  the  capital  was  increased  to  £4,000,000  nominal 
and  £1,200,000  paid-up,  by  the  issue  of  20,000  new 
shares  at  a  premium  of  £16  per  share.  In  1872 
a  further  10,000  new  shares  were  issued,  also  at 
a  premium  of  £16,  and  the  amount  received  on 
account  of  premium  was  credited  to  the  reserve  fund. 
In  1874,  out  of  surplus  profits,  the  directors  declared 
a  bonus  of  lOs.  per  share  by  again  crediting  that 
amount  as  paid  up  on  each  share  on  account  of 

It  was  in  1882  that  the  bank  was  registered  as 
a  limited  company,  when  the  nominal  capital  was 
increased  to  £11,000,000,  and  20,000  new  shares 
issued  at  a  premium  of  £12  10s.  per  share.  The 
whole  of  the  share  capital  was  doubled,  £50  per 
share  being  added  to  the  nominal  or  face  value. 
This  brought  up  each  share  to  the  value  of  £100, 
with  £15  lOs.  paid,  and,  what  was  most  important, 
£50  of  the  balance  due  per  share  was  fixed  as 
♦*  reserved  liability,"  only  to  be  called  up  in  case  of 
the    bank    having    to    go    into    liquidation.       At    the 


present  time,  by  reason  of  increase  of  business  and 
acquisition  of  other  banking  institutions,  the  authorised 
capital  has  been  increased  to  £25,000,000,  of  which 
£28,934,100  has  been  subscribed,  and  £3,654,785  10s. 
paid  up. 

We  have  not  been  able  to  procure  a  copy  of  the 
first  balance-sheet  published  by  the  Union,  but  we 
find  that  at  the  end  of  the  first  year  of  its  establish- 
ment the  directors  allocated  a  certain  proportion  of 
the  profits  as  the  nucleus  of  a  reserve  fund,  which 
has  been  steadily  increased  till  it  now  stands  at 

The  bank  started  with  its  head  offices  at  8  Moor- 
gate  Street,  and  remained  there  till  1845,  when 
premises  were  taken  at  2  Princes  Street.  These 
premises  were  rebuilt  in  1885,  the  premises  of  the 
Azienda  Insurance  Company  on  the  one  side,  and 
those  of  the  world-famed  tavern,  **  The  European," 
on  the  other  were  procured. 

It  was  not  till  1840  that  the  Union  opened  its 
first  branch — in  Eegent  Street,  but  the  following  year 
an  office  was  started  at  Charing  Cross.  In  1855  the 
bank  opened  a  branch  at  Temple  Bar,  and  four  years 
later  took  over  the  business  of  Messrs.  Dixon  &  Co., 


private  bankers,  in  that  district.  Since  then  the 
capacious  premises  in  Chancery  Lane  have  been  erected, 
and  the  business  of  this  branch  has  been  transferred 
there — a  splendid  move  on  the  part  of  the  bank — 
"which  has  ever  since  proved  most  successful  and 
profitable.  It  was  in  1870  that  the  Union  started 
business  at  Holborn  Circus,  and  the  Bayswater  branch 
was  opened  in  1882.  In  188G  the  Fenchurch  Street 
branch  was  opened,  and  almost  at  once  the  bank 
decided  very  wisely  to  put  this  branch  in  the 
"Clearing."  The  same  year  the  Union  took  pre- 
mises and  opened  a  branch  in  Tottenham  Court 
Eoad,  although  there  they  had  to  compete  with  the 
London  &  Westminster,  the  Central,  and  the  City. 
The  venture  w«s  very  successful,  and  the  directors 
must  congratulate  themselves  on  the  decision.  In  1888 
a  branch  was  started  at  Chelsea,  in  Sloane  Street, 
and  in  1892   at   Southwark. 

In  1891  the  Union  took  over  the  old  private  bank 
of  Chasemore  &  Eobinson,  of  Croydon,  and  with  this 
connection  opened  a  branch  in  that  most  important 

We  learn  that  in  the  balance-sheet  for  the  half-year 
ended  80th   June,   1840,  the  total  of  the  current  and 


deposit  accounts  was  only  i;377,000.  Considering  this 
total,  and  that  for  the  year  ended  3 let  December, 
1904,  the  difference  is  most  surprising.  The  balance- 
sheet,  as  published  for  the  half-year  ended  31st 
December,   1904,   was  : — 

Statement   or   Accounts   for  the   Half-year  ending 
31st  Decembek,  1904. 

General  Balance. 

Dr,  Liabilities. 

£        8.    d. 
Capital  subscribed  £22,934,100  in  229,341  Shares 
of  £1C0  each  ;  paid  up  £15  10s.  per  Share      ...     3,554,785  10    0 

Eeserve  Fund — 

Invested  in  Consols,  Local  Loans  Stock,  and 
Transvaal  Government  3  per  cent.  Guaran- 
teed Stock  as  per  Contra         1,150,000    0     0 

Deposits  and  Current  Accounts 34,337,250  16    2 

Acceptances  and  Guarantees  2,157,637  16    2 

Liabilities  by  indorsement  on  Foreign  Bills  sold         13,319    9    4 

Other  Liabilities,  being  interest  due  on  Deposits, 
unclaimed  Dividends,  &c.  ...        445,523  12    1 

Eebate  on  Bills  not  due       23,051    7    2 

Profit  and  Loss — 

Balance  brought  forward      ...    £55,987  16    0 

Net  profit  for   the    half-year 
ending  31st  December,  1904    213,425  19  11 

269,413  15  11 

£41,950,982    6  10 


Cr.  Assets. 

£        8.    d.  £        8.    d. 

Cash  in  Hand ,    3,264,723  15    6 

„    in  Bank  of  England       ...     3,692,518  17    3 

6,957,242  12    9 

Money  at  Call  and  at  Short 
Notice 6  280.641    9    9 


Securities  of  and  guaranteed 
by  the  British  Government    2,963,674  16    5 

Indian  Stock  and  Indian 
Railway  Guaranteed  Bonds       382,436    6    0 

English  Corporation  Stocks, 
Railway  and  Waterworks 
Debenture  and  Preference 
Stocks,  Colonial  Stocks, 
Foreign  Government  and 
Railway  Debenture  Bonds     1,186,464  10    6 

Other  investments 52,571  12  10 

4,585,147    5    9 
Reserve  Fund — 

£560,000  Consols  at  85 

£510,000  Local  Loans  Stock, 
at  96 

£192, 100  Transvaal  Govern- 
ment 3  per  cent.  Guaran- 
teed Stock,  at  96 1,150,000    0    0 

5,735,147    5    9 

Bills  Discounted — 

(a)  Three  months  and  under    4,657,742  11     1 

(6)  Exceeding  Three  months       505,501    7  11 

5,163,243  19    0 

Loans  and  Advances 14,299,819    3    7 

Liabilities  of    Customers  on  Acceptances    and 

Guarantees,  as  per  Contra  2,157,637  16    2 

Liabilities  of  Customers  for  indorsements,  as  per 
Contra         13,319    9    4 

Bank  Premises,  chiefly  freehold 1,214,243  18    8 

Other  Assets,  being  interest  due  on  Investments, 

&c 129,686  11  10 

£41,950,982    6  10 


So  far  as  to-day  is  concerned  the  mot  d'ordre  is  amal- 
gamation. The  directors  of  the  Union  have  grasped 
that,  and  with  their  new  energy  have  proved  them- 
selves not  a  whit  behind,  and  perhaps  far  in  advance 
of  many  of  their  confreres.  They  have  arranged  and 
completed  terms  of  amalgamation  with  one  of  the 
most  important  and  best-known  private  banks  in  the 
financial  world — Messrs.  Smith,  Payne  &  Smiths  — 
whose  reputation  was  world-wide,  whose  connection 
was  very  extensive,  and  at  the  same  time  very  select 
and  valuable,  whose  standing  in  the  city  as  an  old 
private  bank  stood  second  to  none  except  Martin's — 
who  had  registered  under  the  Limited  Liabilities 
Act— and  to  Robarts,  Lubbock  &  Co.,  the  only  remain- 
ing private  bank  in  the  Clearing  House.  In  taking 
this  great  step  in  advance  they  not  only  took  over 
the  London  business  of  Smith,  Payne  &  Smiths, 
but  also  that  of  several  private  institutions  con- 
nected with  the  Lombard  Street  firm  by  connection 
or  otherwise  with  old  -  established  and  widespread 
businesses  in  the  country.  This  at  once  raised  the 
Union  many  points  in  the  estimation  of  their  London 
competitors.  For  many  a  year  previously  several  of 
the    great    joint-stock    amalgamating    banks    had    cast 


envious  eyes  on  the  magnificent  business  of  Smith, 
Payne  &  Smiths,  but  without  result.  The  Union  did 
the  successful  wooing  and  winning.  To  say  that 
London  bankers  were  surprised  at  the  announcement 
is  putting  the  matter  too  mildly — they  were  all  non- 
plussed. It  had  been  thought  that  Smith's  would 
have  followed  the  example  of  Barclay's,  and  made  a 
combination  of  their  own  institutions  and  those  in 
which  they  were  directly  or  indirectly  interested,  and, 
therefore,  no  one  would  have  been  an  atom  aston- 
ished if  they  had  heard  or  read  of  terms  of  arrange- 
ment having  been  entered  into  between  several  private 
banking  companies,  and  a  limited  company  being 
registered  under  the  Act; — in  any  case  the  amalga- 
mation between  the  Union  and  Smiths  was  equally 
advantageous,  the  latter  retaining  the  freehold  of  their 
extensive  premises,   worth  an   almost  fabulous   sum. 

Not  content  with  this  splendid  stroke  of  business — 
the  securing  of  a  house  of  so  great  antiquity — the 
directors  took  another  most  important  step.  They 
managed  to  secure,  on  equitable  terms,  the  old  estab- 
lished house  of  Prescott,  Dimsdale  &  Co.,  of  Corn- 
hill — another  bank  with  a  seat  in  the  "House" — 
and  one  with  a  very  extensive  connection  in  the  West 


of  England.  After  this  second  big  amalgamation  the 
Union  of  London  had,  of  necessity,  to  alter  their 
title,  and  the  directors  decided  to  make  it  as  short  as 
was  compatible  with  public  requirements.  They  there- 
fore styled  their  institution — the  '*  Union  of  London  & 
Smith's   Bank,  Limited." 

The  bank,  as  now  constituted,  has  a  splendid  for- 
ward career  in  front  of  it,  and  we  have  no  doubt 
that  with  a  continued  strong  management  it  will  main- 
tain, if  not  accentuate  the  rapid  growth  it  has  made 
in  recent  years.  Even  yet  with  all  the  competition- 
keen  though  it  is — there  is  plenty  of  room  in  the 
suburbs  for  further  extension — and  still  more  in  the 
provinces.  At  present  there  are  many  districts  quite 
inadequately  supplied  with  banking  accommodation : 
there  are  others  which,  so  far,  have  hardly  been 
touched.  With  their  magnificent  head  ofiice,  their 
great  funds,  and  their  able  management,  the  directors 
of  the  Union  will  probably  before  long  climb  up 
another  rung  or  two  on  the   ladder  of  progress. 

Since    this  date    the  Union   have  taken  over  the 
following  private  banks  : — 

Messrs.  Butcher  &  Sons. 

Messrs.  Hilton,  Rigden  &  Co, 

Messrs.  Sanders,  Snow  &  Co. 


As  it  may  be  of  interest  to  take  a  cursory  glance 
at  the  two  grand  old  houses  taken  over  by  the  Union, 
we  give   a   short   account  of  them. 

Messrs.   Smith,  Payne  &  Smiths. 

This  was  one  of  the  oldest  private  banks  in  London, 
and  is  particularly  interesting,  since  it  was  at  one 
time  so  intimately  connected  with  the  London  Bankers' 
Clearing  House.  Prior  to  the  erection  of  the  present 
Clearing  House  the  "clearing"  clerks  used  to  meet 
in  a  room  in  the  banking  house  of  Messrs.  Smith, 
Payne  &  Smiths.  Although  we  have  not  been  able  to 
obtain  any  definite  information  as  to  the  date  when 
the  occupancy  started  we  have  been  creditably  in- 
formed that  in  1827  '*  the  Clearing  House  or  office 
adjoined  the   bank   of  which   it   formed  part." 

This  famous  banking  house  had  a  most  interesting 
origin.  In  a  large  town  in  the  midland  counties  lived 
a  draper,  whose  name  was  Smith,  and  whose  shop 
was  much  patronised  by  the  farmers'  wives  and 
daughters,  While  the  good  ladies  were  shopping,  the 
farmers  were  busy  transacting  their  own  business,  and 
naturally  called  back  at  the  draper's  to  pick  up  their 
lady  companions.  They  would  adjourn  into  a  com- 
fortable little  parlour  at  the  back  of  the  shop,   where 


they  would  discuss  affairs  in  general,  and  the  state 
of  the  roads  in  particular — the  state  so  far  as  safety 
from  highwaymen  and  footpads  Was  concerned.  In 
those  days  travelling  at  night  was  unsafe  and  hazar- 
dous. Add  to  this  the  fact  that  the  farmers  would 
frequently  have  in  their  possession  large  sums  of 
money,  and  it  will  be  at  once  gathered  that  a 
certain  amount  of  courage  was  necessary  to  under- 
take  the   homeward  journey  unprotected. 

Mr,  Smith  realized  this,  and  hit  upon  a  happy 
idea,  and  suggested  to  the  farmers  that  he  would  will- 
ingly take  charge  of  their  surplus  money,  and  they 
could  get  it  from  him  whenever  they  pleased.  The 
suggestion  met  with  great  favour,  as  it  ensured  safety 
and  obviated  anxiety.  The  honest  and  straightfor- 
ward draper  soon  found  himself  the  custodian  of  con- 
siderable sums  of  money :  he  then  astonished  his 
customers  by  announcing  that  he  would  offer  them 
on  any  sums  they  liked  to  entrust  him  with,  or  rather 
on  the  balance  left  with  him,  a  small  rate  of  interest. 
The  natural  consequence  was  that  the  amount  of 
the  deposits  rapidly  increased.  Year  by  year  the 
business  of  the  mid-country  draper  continued  to  in- 
crease,   and    to    such    an    extent    that    it    was    found 


essential  that  a  separate  department  should  be  opened 
to  meet  the  banking  requirements  of  the  customers, 
who  flocked  from  far  and  near.  At  last  the  drapery- 
business  was  entirely  dropped,  and  all  attention  was 
given  to  banking. 

His  son,  besides  continuing  business  at  Nottingham 
opened  offices  at  Hull  and  Lincoln.  Presently  it  was 
found  needful  to  have  a  London  representative,  and 
Mr.  Payne  was  selected.  The  choice  turned  out  a 
very  happy  one.  In  1759  the  name  appears  in  the 
directory  as  Smith  &  Payne,  of  Lothbury,  and  in 
1770  they  removed  to  18  Lombard  Street.  In  1773 
the  firm  was  Smith,  Payne  &  Smith,  of  George 
Street,  Mansion  House.  In  1785  it  was  Smith,  Payne, 
Smiths  &  Payne,  but  in  1786  the  second  Payne  dis- 
appeared, and  the  firm  traded  as  Smith,  Payne  &  Smiths. 

The  bank  is  first  recorded  as  at  No.  1  Lombard 
Street,  in  1880,  a  building  still  used  by  the  now 
amalgamated  banks,  the  business  of  the  now  defunct 
"  house "  being  still  carried  on  there.  In  this  par- 
ticular we  must  record  that  there  is  no  bank  in 
London — other  than  the  Bank  of  England — enjoying 
so  magnificent  a  site.  Not  only  does  the  freehold  of 
No.   1   Lombard   Street,  belong  to  the   Smith    family, 


but  the  whole  of  the  land  bounded  by  Lombard 
Street,  St.  Swithin's  Lane,  George  Street  and  Mansion 
House  Street  respectively — a  freehold  site  the  value  of 
which  can  only  be  dreamed  of,  but  which,  sold  under 
the  hammer,  would  cause  the  greatest  sensation  of 
many   centuries   past. 

There  is  a  good  tale   told  of  a  young  woman,  who 
was   brought  many   years  ago  before  a  London  magis- 
trate  for    vagrancy.      On    being   asked   her  name,   she 
replied    that    it    was     Smith.      Her    interrogator    then 
wanted    to    know    whence    she    came,    and    what    was 
her   father's   occupation.      The   worthy    magistrate   was 
astounded  to   learn   that   her   father    was   a  banker   at 
Nottingham.     At   once  the  renowned    Nottinghamshire 
banker  flashed  before  him,  but   the  appearance   of  the 
young  woman    seemed   to   belie   her  relationship  to   so 
wealthy    and    respectable   a   gentleman.      As,   however, 
she   persisted  in   her    statements,    and  said,   moreover, 
that   she  had  been  obliged  to  leave  home  because  her 
father   could    not    afford  to    keep   her,   the   magistrate 
was  more  and  more  mystified,  and  remanded  her  while 
inquiries  were  instituted.     A  clergyman  of  Nottingham 
was   communicated  with,   who   shated   that  the    young 
woman  was  not  the  daughter  of  the  renowned  banker. 


but  of  a  mud  banker  in  the  fens,  and  that  her  father 
had  been  compelled  through  her  misconduct  to  refuse 
to  support  her.  He  further  stated  that  the  labourers 
engaged  in  draining  the  water  from  the  fens  were 
called  bankers — hence  the  term  '*  country  banker." 

Presoott,  Dimsdale  &  Co. 

This  bank,  though  to  all  intents  and  purposes  a 
private  institution,  was  yet  a  company  registered  under 
the  Joint  Stock  Companies'  Act.  Like  Barclay's  it 
was  a  combination  of  several  private  banks — namely, 
Prescott,  Cave,  Buxton,  Loder  &  Co.,  and  Messrs. 
Dimsdale,  Fowler,  Barnard  &  Dimsdale,  of  London ; 
Messrs.  Miles,  Cave,  Baillie  &  Co,,  of  Bristol;  and 
Messrs,  Tugwell,  Brymer  &  Co.,  of  Bath.  When  the 
amalgamation,  which  came  quite  as  a  surprise,  took 
place,  the  name  of  the  Jfirms  was  altered  to  Pres- 
cott, Dimsdale,  Tugwell  Co.,   Limited, 

Prescott  &  Co. — This  bank  had  but  little  history. 
It  was  started  in  Threadneedle  Street,  and  it  was 
practically  in  the  same  spot  that  business  was  con- 
ducted at  the  time  of  the  amalgamation  with  Messrs. 
Dimsdale,  of  Cornhill.  It  was  founded  as  far  back 
as  1766,  with  the  title  of  Prescott,  Grote  &  Co.,  and 


it  was  first  opened  for  business  at  57  Tlireadneedle 
Street.  It  is  not  quite  clear  when  the  business  was 
transferred  to  No.  62,  but  that  is  the  address  given 
in  the  directory  for  1776,  when  the  title  of  the  bank 
appears  as  Prescotts,  Grotes,  Culverden  &  Hollings- 
worth.  In  1797  the  name  of  Culverden  does  not 
appear,  the  firm  standing  as  Prescott,  Grote  &  Hol- 
lingsworth.  Two  years  later  the  name  HoUingsworth 
disappeared,  and  another  Prescott  came  on  the  scene, 
the  title  then  being  changed  to  Prescott,  Grote  &  Pres- 
cott. After  sundry  changes  the  name  of  the  firm 
was  known  in  1876  as  Prescott,  Cave  &  Co.,  and 
this  title  was  retained  until  the  amalgamation. 

DiMSDALE  &  Co. — After  much  enquiry  we  have  been 
entirely  unsuccessful  in  tracing  the  exact  date  of  the 
establishment  of  this  very  old  private  house,  but  it 
is  quite  clear  that  it  must  have  been  established  prior 
to  1762.  One  interesting  point  is  this,  that  like  all 
bankers  or  goldsmiths  of  or  about  this  date,  it  had 
its  distinctive  sign,  and  was  better  known  by  the 
name  of  "The  Golden  Helmet  and  the  Golden  Bear," 
than  by  the  name  of  the  partners  themselves.  In 
1770  business  was  carried  on  at  50  Cornhill,  by 
Messrs.  Cornewall,  Staples  &  Watts.     About  the  same 


time  Messrs.  Dimsdale,  Archer,  Kyde,  Dimsdale  &  Co, 
were  in  business  at  2  White  Hart  Court.  In  1779 
an  amalgamation  took  place  between  the  two  firms. 
The  two  united  firms  carried  on  business  in  a 
satisfactory  and  progressive  way  till  1852,  when  an 
amalgamation  was  effected  with  the  old  private  house  of 
Drewett,  Fowler  &  Co,,  when  the  name  of  the  united 
firms  was  altered  to  Dimsdale,  Drewett,  Fowler  &  Bar- 
nard. In  1866  the  name  Drewett  disappeared,  and 
later  the  title  was  changed  to  Dimsdale,  Fowler, 
Barnard   &   Dimsdale. 

The  firm  of  Drewett  &  Fowler  was  founded  late  in 
the  last  century  by  a  bill-broker  named  Mr.  Joseph 
Smith,  who  was  a  partner  in  the  firm  of  Birkbeck  &  Co., 
of  Settle.  Mr.  Smith  had  in  his  establishment 
a  clerk  named  Holt,  whom  he  afterwards  took  into 
partnership,  and  the  style  of  the  house  was  altered 
to  Smith  &  Holt.  In  1809  it  was  known  as  W. 
Holt  &  Co.,  Mr.  Smith  having  retired  and  a  Mr. 
Drewett  having  been  taken  in  as  a  partner.  In  1828 
Mr.  Holt  died,  and  Mr.  Thomas  Fowler  joined  the 
firm,  which  was  then  known  as  Drewett  &  Fowler. 
Referring  to  this  bank  the  City  Press  said :  "  It  is 
always  a  pleasure    to   note   the    history  of  old  firms, 


but  it  sometimes  happens,  as  in  the  case  of  this 
house,  that  although  there  have  been  times  of  great 
depression  and  feverish  excitement,  enormous  specula- 
tions and  tremendous  failures,  that  throughout  it  all 
the  *  even  tenour  of  its  way '  is  pursued,  so  that 
beyond  the  bare  record  of  the  changes  which  the 
stern  hand  of  Death  invariably  necessitates,  there  is 
but  little  else  to  record.  The  bare  fact  of  a  bank 
established  considerably  more  than  a  century  ago 
being  able  to  still  maintain  its  richly-merited  con- 
fidence, and  unsullied  name,  in  spite  of  the  keen 
competition  of  the  present  time,  speaks  volumes  to  its 
credit.  At  times  of  great  financial  crises,  and  ex- 
ceptional disturbance  in  the  banking  world,  when 
many  houses  of  long  standing  were  either  actually 
stopping  payment,  or  tottering  to  their  fall,  the  firm 
of  Messrs.  Dimsdale  &  Co.  has  stood  its  ground  firm 
and  unshaken.  Though  joint-stock  banks  have  sprung 
up  on  all  sides  of  us,  with  their  enormous  capitals, 
and  unlimited  resources,  offering  banking  facilities  in 
earlier  times  unthought  of,  yet  this  house,  more  than 
twice  the  age  of  the  oldest  joint-stock  bank,  not  only 
keeps  in  the  running,  but,  what  is  more,  enjoys  as 
high,   if  not  higher,   a  reputation   than   ever. 


"To  the  City  this  house  is  of  especial  interest, 
because  one  of  its  chief  members  is  Sir  Eobert 
Nicholas  Fowler.  This  gentleman  was  elected  Alder- 
man for  the  "Ward  of  Cornhill  in  1878.  Two  years 
later  he  was  elected  Sheriff  for  London  and  Middle- 
sex. In  1884  he  enjoyed  the  highest  civic  dignity, 
as  he  represented  London  as  its  Lord  Mayor.  It 
was  during  his  mayoralty  that  Prince  Leopold,  Duke 
of  Albany,  died,  and  the  Inner  Circle  Eailway  was 
opened.  The  following  year  the  then  Lord  Mayor 
(Mr.  Alderman  Nottage)  died  in  office,  and  Mr.  Alder- 
man Fowler  was  unanimously  elected  to  take  his 
place,  and  before  his  second  term  of  office  had  ex- 
pired her  Majesty  conferred  a  baronetcy  on  him. 

**  Sir  Bobert  Fowler  was  well-known  as  a  politician, 
and,  when  he  addressed  the  House,  always  spoke 
straight  to  the  point.  Mr.  Gladstone,  addressing  Mr. 
Fowler  at  the  banquet  on  November  9th,  1888,  said, 
*I  have  always  known  you  as  a  frank,  bold,  and 
courageous  opponent  in   the  House  of  Commons,'  " 

After  the  amalgamation  it  was  decided  that  the 
head  office  should  be  in  Cornhill  instead  of  Thread- 
needle  Street,  so  the  business  of  Messrs.  Dimsdale 
was    transferred     to    the    latter     address    during    the 


demolition  of  the  Cornhill  premises.  This  took  a 
considerable  time  and  evoked  a  great  amount  of 
interest.  It  was  decided  to  build  a  double  basement, 
and  that  necessitated  sinking  the  foundations  to  a 
depth  of  from  80  to  40  ft.  Archaeologists  all  over 
the  country  watched  the  progress  of  the  excavation 
with  the  keenest  interest,  and  were  will  rewarded  for 
their  pains.  The  deeper  the  excavations  became  the 
more  treasures  were  found.  These  consisted  of  all 
sorts  of  Eoman  relics — pottery,  spearheads,  and  the 
like,  with  now  and  again  articles  of  antiquity  which 
reminded  one  very  forcibly  of  those  of  to-day.  The 
old  Eoman  wall  which  in  ancient  times  surrounded 
Londiniensis  was  struck  at  an  angle,  and  for  days 
strenuous  endeavours  were  made  to  remove  it.  It 
was  about  20  ft.  below  the  level  of  the  street — but 
the  stone,  or  concrete  which  answered  the  pur- 
pose of  stone,  was  of  such  a  nature  that  the  edges 
of  the  chisels  were  turned  as  though  they  had  been 
made  of  tin.  Finally,  it  was  decided  that  no  further 
money  should  be  spent  on  such  unremunerative  work, 
and,  consequently,  to-day  in  what  become  the  head 
office  of  Prescott  Dimsdale's  bank  —  and  now  is 
the    Cornhill    branch   of    the    Union    of    London    and 


Smiths — there  can  be  seen  in  one  of  the  vaults  the 
angular  portion  of  what  at  one  time,  in  the  days 
of  long  ago,  was  part  of  London's  fortifications. 
"  While  writing  on  this  subject,"  says  a  well-known 
authority,  "I  may  mention  that  when  the  old  house 
was  being  demolished  I  saw  close  by,  in  fact,  adjacent 
to  the  old  Eoman  wall,  a  portion  of  what  appeared 
to  be  a  tomb  covered  over  with  a  very  thick  block 
of  stone.  Much  curiosity  was  evinced  as  to  what 
it  in  reality  was,  but  the  investigation  started  was 
never  pursued.  It  appeared  to  me  as  though  it 
might  have  been  a  receptacle  for  records  and  docu- 
ments. Some  attempts  were  made  to  break  away  the 
brickwork,  but  these  failed  ignominiously.  Numerous 
human  bones  were  discovered,  and  at  the  greatest 
depth,  below  the  bed  of  London  clay,  and  buried  in 
the  white  clay  which  underlies  the  London  clay,  was 
discovered  a  skull.  To  whom  it  belonged  or  by  what 
means  the  owner  met  with  his  death  will  for  ever 
remain  a  mystery.  It  was  here,  too,  that  the  bed  of 
a  stream  was  discovered ;  whether  or  not  it  was 
once  a  portion  of  Wall  Brook  has  not  been  decided, 
but  there  were  clear  indications  that  at  one  time  it 
had  been   a  rivulet."      The  London    wall  referred    to 


above  was  probably  a  portion  of  that  which  was  dis- 
covered when  "The  Woolpack "  [at  the  corner  of 
St,  Peter's  Alley  was  being  rebuilt,  and  when  the 
foundations  of  "The  Half  Moon"  at  the  corner  of 
the  main  entrance  to  Leadenhall  Market  were  being 
laid.  The  angle  in  each  of  the  three  cases  seems 
to  have  been  almost  identical. 



Williams,  Deacon's  Bank,  Limited. 

There  is  no  bank  in  London  enjoying  a  higher  repu- 
tation than  that  of  Williams,  Deacons.  Long  before 
the  time  of  any  of  the  present  generation  existed 
this  house  was  flourishing,  doing  a  large  business, 
and  earning  for  itself  golden  opinions  all  over  the 
country.  It  was  with  a  pang  of  regret  that  one 
learned  that  the  partners  had  decided  to  combine 
their  interests  with  those  of  the  Manchester  &  Sal- 
ford  Bank,  Limited,  although  everybody  knew  that 
the  latter  institution,  though  of  comparatively  modem 
growth,  was  sound  as  a  trivet,  had  a  splendid  con- 
nection, and  was  doing  a  large  and  remunerative 
business.  With  many  folk  there  is  the  feeling  that 
if  a  private  bank  allow  itself  to  be  absorbed  by  a 
limited  company — be  it  ever  so  good — an  old  land- 
mark has  been  swept  off  the  scenes.  Hence  it  was 
that  the  amalgamation  of  Williams,  Deacons  &  Co. 
with  the  Manchester  &  Salford  Bank,  Limited,  by  no 
means  gave  unmixed  pleasure  and  satisfaction. 


So  far  back  as  1793  in  the  "  List  of  Bankers " 
we  find  ''Williams,  Son  &  Drury,  20  Birchin  Lane," 
and  this  firm  appeared  in  the  "Directory"  for  1779 
as  "Lowe,  Vere,  Williams  &  Jennings,  of  20  Birchin 

When  the  house  was  actually  started  we  cannot 
trace — but  it  was  "in  the  days  of  long  ago."  It 
would  be  exceedingly  interesting  to  find  the  old 
records  and  make  from  them  quotations  which  would 
enable  us  to  see  what  was  the  nature  of  the  busi- 
ness then.  That  it  was  very  far-reaching  none  will 
doubt,  and  most  probably  it  was  in  the  nature  of 
that  carried  on  by  other  goldsmiths — "kepeing  run- 
ning cashes."  In  the  days  of  wild  excitement  and 
mad  frenzy  attendant  on  the  South  Sea  Bubble  the 
bank  was  there,  and  successfully  weathered  the  terrific 
crash  which  followed.  The  crises  of  the  Bank  of 
England  were  witnessed  and  tided  over  without  trouble. 
The  cashiers  welcomed  all  customers  on  Black  Friday. 
The  Baring  crisis  had  no  effect.  And  when  we  had 
the  Australian  Black  List  constantly  growing  longer 
and  more  serious,  business  in  this  bank  went  on  in 
the     usual    methodical    uninterrupted    manner.       One 

would  at  these  times  of  stress  as  soon  have  expected 
the  Old  Lady  of  Threadneedle  Street  to  close  her 
doors  as  to  have  dreamed  of  any  unbearable  strain 
being   felt  by  this  old  banking  house. 

The  firm  were  the  recipients  of  all  sorts  of  con- 
fidences from  near  and  far.  When  by  chance  there 
was  trouble  abroad  customers  would  send  their  valu- 
ables for  safe  custody,  and,  perchance,  some  of  these 
packages  were  never  called  for.  In  the  times  of 
Continental  wars  we  are  informed  that  it  was  no 
uncommon  thing  for  the  bank  to  receive  a  sealed 
box  or  case  for  safe  custody,  and  it  is  more  than 
probable  that  during  troublous  times  at  home  the 
bank  received  like  confidences.  It  was  not  many 
years  ago  when  the  bank  authorities  having  decided 
to  have  a  clean-out  of  their  strong-room  a  singular 
thing  occurred.  While  moving  an  old  time-worn 
wooden  box  the  men  let  it  fall.  It  dropped  on  one 
of  its  corners,  which  was  smashed.  To  the  astonish- 
ment of  all  gold-dust  and  rough  diamonds  poured  out. 
The  box  had  been  in  the  bank's  custody  so  many  years 
that  the  label  containing  the  name  and  particulars 
had  long  since  gone,  and  although  the  most  dihgent 
search    was  made,   no    trace  could    ever  be    found    in 


any  of  the  books  of  the  original  depositor.  We  give 
this  as  we  heard  it  from  one  of  the  officials,  but 
we  have  not  learned  what  was  the  actual  fate  of 
this  most  mysterious  deposit.  And  this  is  only  one  I 
How  many   others   may   there   not  have  been  like   it? 

The  Manchester  &  Salford  Bank  with  which 
Williams  Deacon  amalgamated  was  established  in 
1836,  and  on  August  15th  of  that  year  commenced 
business  in  King  Street,  Manchester.  From  the  very 
first  substantial  progress  was  made,  as  will  be  seen 
by  the  following  extracts  from  the  report  presented 
at   the   first   annual   meeting   (August   28th,    1837) : — 

''  The  accounts  have  been  made  up  to  the  30th  June 
last,  and  after  all  the  expenses  of  outfit  have  been 
deducted,  as  well  as  an  ample  sum  for  dubious  and 
bad  debts,  the  balance  of  profit,  consisting  of  profit 
on  trade  and  premium  upon  shares,  has  been  ascer- 
tained to  amount  to  £18,872  2s.  8d.,  and  the  state- 
ment of  the  accounts  has  been  examined  and  signed 
by  three  of  the  directors,  in  conformity  with  the  eighth 
clause   of    the  Deed  of    Settlement. 

"  The  directors  have  come  to  the  conclusion  that 
in  the  exercise  of  their  discretion  they  shall  best 
promote  the  permanent    interests   of    the   company  by 


carrying  the  above-mentioned  sum  of  £18,872  2s.  8d. 
to  a  '  Reserved  Surplus  Fund '  account ;  and  they 
esteem  it  a  fortunate  circumstance  that,  after  a 
period  of  extraordinary  reverses  in  trade  and  great 
interruption  of  business,  they  are  thus  enabled  to  lay 
the  foundation  of  a  Guarantee  Fund,  so  conducive 
to   the  prosperity  and   safety  of  the  bank." 

This  wise  poHcy  was  steadily  pursued  with  great 
advantage  to  the  bank's  reputation.  The  original 
paid-up  capital  was  £252,000.  In  1860,  after  paying 
a  dividend  of  8  per  cent.,  a  bonus  of  4s.  2d.  per 
share  was  declared  to  be  added  to  the  capital  stocky 
and  at  the  next  yearly  meeting  a  similar  bonus  on 
the  capital  was  announced,  thus  raising  it  to 
£296,845  15s.  8d.  Next  year  a  bonus  of  8s.  4d. 
was  similarly  distributed,  and,  in  1863,  4s.  2d.  per 
share.  Two  years  later  a  bonus  of  18s.  9d.  per 
share  was  declared.  In  1874,  when  the  business  of 
Heywood  Brothers  &  Co.  was  acquired  15,000  new 
shares  were  issued,  and  at  a  speciel  general  meeting 
in  1877  it  was  decided  to  create  a  further  25,000. 
At  the  close  of  1880  the  paid-up  capital  was 
£760,000,  which  large  sum  was  increased  to  £1,000,000 
on  the  amalgamation  with  WiUiams  Deacon  in  1890. 



When  the  amalgamation  was  effected  the  name 
of  the  north  country  bank  was  tacked  on,  and 
remained  so  for  many  years,  but,  at  last,  it  was 
decided  to  take  the  wise  course  of  altering  an  un- 
wieldly  title  to  one  which  could  be  easily  remembered 
and  recorded.  So  far  as  the  London  bank  was  con- 
cerned, even  after  the  amalgamation,  the  old  name 
was  regarded  by  the  public  as  the  only  right  one. 

Below  is  a  copy  of  the  balance-sheet  issued  by  the 
bank,   under  date  81st  December,   1904 : — 


£       8.   d. 
To  Capital :   125,000  £50  Shares 

£        s.  d. 
6,250,000    0    0 

Of  which  paid-up  £8  per 

1,000,000    0    0 

„  Eeserve  Fund 

625,000    0    0 

„  Unpaid  Dividends     895  10    0 

„  Dividend  and  Bonus,  Decem- 
ber, 1904 75,000    0    0 

„  Amount  due  on  Current,  Deposit  and  other 

75,805  10    0 
11,354,456    8    9 

,,  Acceptances  and  Credits  opened  on  behalf 
of  Customers           

298,481  11    0 

„  Foreign  Bills  Negotiated        

31,017    0  10 

„  Rebate  Account 

23,620    9    3 

„  Balance  of  Profit  and  Loss  carried  forward 

7,566    5    2 

£13,415,947    5    0 



T>    ^    .  £        s.  d. 

£y  Cash  on  Hand  and  at  the 

Bank  of  England       ...  1,890,554  15  11 

„   Money  at  Call  and  at  Notice  1,290,944    2    2 

„    British  Government  Stock, 
viz. : — 
£1,111,111  2  0  2i  per  cent.  Consols,  at  85 

, ,    British  and  Indian  Govern- 
ment Securities,English 
Railway  Stocks,  &c.   ... 

Bills  of  Exchange 

Advances  on  Current  Ac- 
counts and  Loans  on 

Acceptances  and  Credits 
Issued  on  behalf  of 
Customers,  as  per  contra 

Foreign  Bills  Negotiated, 
as  per  contra 

Bank  Premises  in  London, 
Manchester  and  thirty- 
five  other  places 

Leis     Depreciation 

480,772  14    1 
112,000    0    0 

£    s.  d. 

3,181,498  18  1 

944,444  8  6 

1,399,130  14  7 

5,525,074  1  2 

2,078,985  11  8 

5,113,616  6  8 

298,481  11  0 
31,017  0  10 

328,772  14  1 
£13,415,947  5  0 

.^    ^  V   ->    N   A    :?    y- 

or  TMl 


London  &  Paris  Exchange, 

Authorised  Capital 


Managing  Director 

-       A.  M.  MANDEVILLE,  Esq. 


Banking  and  Exchange  Business  of  Every  Description  Transacted. 
Advances  made  on  Industrial  Securities  at  1  per  cent  above  Bank  Eate, 

and  on  Mining  Shares  at  5  per  cent,  per  annum. 

Deposit  Accounts  :  Eate  3  per  cent,  per  annum,  Eepayable  on  Demand, 

Drafts  Issued  on  New  York,  Paris,  Berlin,  Amsterdam,  and  Montreal, 


Business  undertaken  in  all  Stocks  and  Shares.     Unquoted  Securities 



Special  Eates  quoted  for  all  classes  of  Insurance. 

Head  Offices— 

Banking  and  Insurance  Departments— 

Auction,  Land  and  Estate  Department— 

West  End  Office— 

Branch  Offices— 

Aberdeen  —  Northern  Assurance  Buildings, 

Union  Street. 
Belfast— DonegaXl  Square  West, 
Birmingham— Central  House,  New  Street. 
Brighton— 150,  North  Street. 
Bristol— 2Z,  Clare  Street. 
Cambridge  —  Llandaff    Chambers,    Regent 

DttSZin— 43,  Dame  Street. 
Eastbourne — 17a,  Terminus  Road. 
Olasgow-^b,  Renfield  Street. 
Hastings— 6,  Trinity  Street. 
flwW— Prudential   Buildings,   King  Edward 

Leeds— St&ndard  Buildings,  City  Square. 

Liverpool — 11,  Lord  Street. 

Manchester— Eagle  Insurance  Buildings,  64, 
Cross  Street. 

Neweastle-on-Tyne  —  Sun  Insurance  Build- 
ings, Collingwood  Street, 

JNottingham— 19,  Low  Pavement. 

Oxford— Ba,  St,  Michael's  Street, 

Plymouth  —  Prudential  Buildings,  Bedford 

Southampton— FrudentiaX  Buildings,  Above 

Canada— TORONTO  :  34,  Victoria  Street. 
Licensed  by  the  Government  of  Ontario  to  deal  in  Stocks  and  Shares. 

Foreign    Agencies— PARIS,  BERLIN,  ANTWERP,    AMSTERDAM,    NEW    YORK, 

Telephones— 223,  223  and  227  London  Wall  (National).     6536  Central  (P.O.) 
Telegrams  and  Cablegrams    Private  Wire)— "Plenarily,   London." 


London  &  Paris  Exchange, 

(Incorporated  under  the  * '  Companies  Acts,  1862  to  1900.) 

Authorised  Capital        -        -        £250,000 
Paid-up   Capital     -        -       -        £100,000 

Managing  Direetop        -        -        A.  M.  MANDEVILLE,  Esq. 

if^HE  history  of  this  important  financial  institution  is  briefly 
this  :  Foreseeing  a  steady  development  throughout  the 
United  Kingdom,  the  Continent,  and  the  Colonies  of  the  Indus- 
trial and  Mining  Industries,  and  recognising  the  important  fact 
that  the  public  must  year  by  year  require  increased  facilities  for 
dealing  in  and  obtaining  advances  on  such  securities,  it  was  decided 
in  1895  to  found  the  London  <fe  Paris  Exchange,  Limited.  Business 
was  commenced  at  24,  Throgmorton  Street,  a  few  doors  away  from 
where  the  first  Joint-Stock  Bank,  i.e.,  the  London  <fe  Westminster 
Bank,  was  first  started.  The  j^ublic  were  quick  to  appreciate  the 
advantages  and  facilities  offered,  together  with  the  promptness  and 
accuracy  with  which  all  transactions  were  carried  through,  that 
within  a  very  few  years  the  clientele  of  the  firm  so  increased  that 
larger  ofl&ces  had  to  be  secured,  and  the  business  was  transferred  to 
its  present  'premises  at  Basildon  House,  Moorgate  Street,  Bank. 

Each  successive  year  the  volume  of  business  steadily  expanded, 
calling  for  additional  office  accommodation,  so  that  at  the  present 
time  the  offices  occupied  by  the  London  &  Paris  Exchange  rank 
among  the  finest  and  most  business-like  in  the  City  of  London. 
Branch  Offices  have  been  established  at  most  of  the  leading  centres 
in  the  United  Kingdom,  and  aflford  those  clients  residing  in  the 
provinces  the  facility  of  having  a  personal  interview  with  their 
Managers.  Agencies  have  also  been  established  at  the  leading 
financial  centres  on  the  Continent  and  in  the  Colonies.  At  Toronto, 
Canada,  the  Exchange  hold  a  special  license  from  the  Government 
of  Ontario  to  deal  in  Stock  Exchange  Securities.  The  Exchange 
has  been  successful  in  negotiating  several  Municipal  and  Corpora- 
tion Loans,  and  the  Estate  and  Insurance  Departments  are  rapidly 
extending  their  sphere  of  influence,  proving  of  great  utility  and 
importance  to  the  general  public.  So  colossal  a  business  involves 
the  employment  of  a  very  large  staff,  which  must  of  necessity  be 
highly  trained  ;  the  employees  have  their  own  Athletic  and  Cricket 
Club,  with  their  private  grounds  at  Mill  Hill  Park,  Ealing. 

Until  the  London  <fe  Paris  Exchange  was  founded  no  recognised 
Banking  institution  existed  prepared  to  fill  the  place  left  vacant 
by  the  private  Banker,  or  to  cope  with  the  wants  of  the  Mining 
and  General  Investor.  The  integrity  and  intelligence  with  which 
it  has  been  conducted  is  responsible  for  the  high  standing  of  the 
firm  in  the  world  of  finance  to-day. 



Barclay  &  Company,  Limited. 

Being  a  History  of  the  old  Banking  firm  of  Barclay  dc  Company ^ 

and  also  of  the  various  Institution  which  have  been,  from  time  to 

timey  amalgamated  with  or  absorbed  by  them. 



(author  of  **  THE  THREE  CROWNS  "  ;  **  LEADING  LONDON  BANKS  "  ;  *'  80MMB 

OLDB  curiosities";    "banking  statistics";   "bank  balance  sheets"; 
"  our  clearing  system  and  clearing  houses  "  ;  etc.,  etc. 

S)cMcate&  to 
J.    HERBERT     TRITTON,     Esq. 



Paper  Covers,  2s.  6d. ;  Cloth  Boards,  3s.  6d. 

London  :  Lombard  Press  Association,  45,  Lombard  Street,  E.G. 

For  History  of  Old  London  Private  Banks  read 

BY  A  KNTGTHE  OFFE  YE  QUILLE.  Price,  Paper  Cover*,  Is. 

Contents  :— 


I,  Early  Banking, 
II.  The  Goldsmiths. 

III.  Retfal  Tyranny. 

IV.  Questionable  Reparation. 
v.  Old  Houses. 

VI.  "The   Three    Crowns"  —  Messrs. 

Coutts  &  Co. 
VIL  "The   Marygold"— Messrs.    Child 

Vin.  "The  Grasshopper"— Messrs.  Mar- 
tin &  Co. 


IX.  Messrs.  Smith,  Payne  &  Smiths. 
X.  Messrs.      Barclay,     Bevan,     Tritton 

Ransom,  Bouverie  &  Co. 
XI.  Meij*r8.  Glyn,  Mills  &  Co. 
XII.  Messrs.  Fuller  dc  Co. 

XIII.  Messrs.  Robarts,  Lubbock  &  Co. 

XIV.  Messrs.  Bosanquet.  Salt  &  Co. ;  Willis, 

Percival  k  Co.;  Goslings,  Sbarpe  & 
XV.  The  Bankers'  Clearing-HouBe. 
XVI.  Odds  and  Ends. 

Press  Opinions:— 

"An  interesting  history  of  old  London  'Bw.nV.n  "Statiat. 

"A  mass  of  Interesting  records  and  comments."-  -Bankerif  Magazine. 

"  Will  interest  and  amuse  everyone  who  is  •  Something*  In  a  Bank."-  Scotsman. 

"The  book  Is  valuable  alike  for  the  record  facta  which  It  presents,  and  for  the 
amount  of  entertainment  it  affords."— Liverpool  Courier. 

"The  story  of  early  English  Banking,  told  in  a  graphic  way,  and  Is  replete  with 
anecdotes  and  historical  reminiscejices."— Fi/ianciaZ  News. 

London  :   The  Lombard  Press  Association,  45,  Lombard  Street,  E.G. 

^'Our  Clearing:  System 

and  Clearing;  Houses" 


By  W.  HOWARTH,  F.R.HistS.    (Author  of  "  History  of  Greenwich,"  &c.) 

Dedicated  to  Sir  John  Lubbock,  Bart.,  M.P.,  F.R.S.,  D.CL.,  M.A.,  &c. 

Price  28.  6d.  London:  EFFINGHAM  WILSON,  54,  Threadneedle  Street. 

"A  handy  and  useful  Book."— Tme*. 

"  A  very  interesting  description  of  Clearing  in  London,  as  well  as  the  leading  provincial 
towns,  Paris,  Berlin,  and  New  York." — Daily  Telegraph. 

"  Concise  descriptions  of  the  system  pursued  in  the  Clearing  Houses  of  London  and  the 
country." — Daily  Chronicle. 

"  States  in  a  clear  and  concise  manner  the  way  in  which  the  system  works,"— <S^  James' 

"The  author  is  a  gentleman  of  much  practical  knowledge,  painstaking  and  thorough. 
His  descriptions  may  be  relied  on,  and  the  style  will  be  found  interesting  and  instructive." 
— Banking  World. 

"A  very  clear  and  interesting  account  of  the  Clearing  System." — Liverpool  Post. 

"Mr.  Howarth's  description  of  the  very  simple  mechanism  of  the  Clearing  House  is  at 
once  clear  and  interesting."  ~  Fconomifit. 

"  The  volume  contains  a  very  graphic,  albeit  simple,  description  cf  the  Clearing  House 
System,  in  which  even  its  intricacies  are  made  clear  to  the  most  unbusinesslike  mind." — 
Bankers'  Magazine. 

"  The  book  is  pleasantly  written,  and  may  be  recommended  to  all  who  wish  for  informa- 
tion on  the  euhject  ^'—Manche(<ter  Courier. 

"  It  affords  ample  and  clear  information  respecting  not  only  the  mode  of  transaction  in 
Post  Office  Court,  but  gives  much  information  respecting  similar  establishments  elsewhere." 
— BuUionist. 

Published  annually  in  June, 

Established  1865."]  the  [Price  10s. 




An  account  to  date  regarding  the  Banks  and  Kindred  Companies 
and  Firms  which  make  up  the  London  Money  Market ;  the  British 
Provincial  Banking  Companies  and  Firms ;  the  Principal  Colonial  and 
Foreign  Banks  and  Kindred  Firms. 

An  Alphabetical  List  of  British,  Colonial  and  Foreign  Towns  where 
the  foregoing  Banks  have  Offices,  with  the  London  Agents  of  each. 

An  Alphabetical  List  of  Partners  in  the  Banking  and  Kindred  Firms 
of  the  United  Kingdom. 

An  Alphabetical  List  of  Telegraphic  Addresses,  &c.,  &c.,  &c. 


Compiler  and  Editor  of  '*  The  Stock  Exchange  Year-Book  "  ;  "  The 
Stock  Exchange  Gazette  "  ;  "  The  Directory  of  Directors,"  &c. 



A  Weekly  Newspaper.  Established  1898. 

Banking  Notes,  Insurance  Notes.  Notes  by  "Crabstick."  Articles 
on  British  Private  and  Joint-Stock  Banks,  Foreign  and  Colonial  Banks, 
Insurance  Companies,  Railways,  Industrial  and  other  enterprises.  Critical 
Notes.    Advice  to  Investors. 

Price  2d.    Post  free :  1  year,  8s.  8d. ;  3  months,  4s.  4d.; 
3  months,  2s.  2d. 

Editorial  &  Publishing:  Offices:  45,  LOMBARD  ST., 
X  LONDON,   B.C. 




By  B.  B.  TURNER. 

"  A  handy  guide  to  those  who  wish  to  follow  the  main  course  of  the 
Bank's  progress." — Literature. 

'*  A  pleasantly  written  sketch.     .     .    .     Well  illustrated."— 5<a<trt. 

"  The  book  will  afford  much  pleasure  as  a  bit  of  highly  interesting 
reading. " — Scotsman . 

"  "We  cannot  speak  too  highly  of  this  book." — Finance. 

*'  Crowded  with  reliable  information  on  a  subject  which  to  many 
minds  is  nothing  short  of  fascinating— the  control  of  vast  monetary 
wealth."— Literary  \\  orld. 

**  Mr.  Turner's  careful  compilation  is  an  epitome  of  English  finance 
for  two  centuries."— J5oo/;7;ian. 

Price  7s.  6d, 










Boir  = 



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demand  m^y  be  renewed  if  application  is  made  before 
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L,  £2,800,000. 

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19  im 

NOV  t«  197082 

JT,  G.C.S.I. 
s,  Esq. 



T>.  Nichols 


C.  Flebt. 



W.  HimSLBT 

BLO     r 


F.  Bbetb 
I  Hart 
R.  Few 






E.  Daws 


H.  Panter 




F.  Revis 
W.  Paicb 
B.  Anderson 


E.  Box 


JAN  2    -BA-ePM 



5.  LiNDON 

N.  Dennant 


BECD  LO     WO^ 

11070-7  PW4t 

B.  Boxer 

F.  E88B 

H.  Daws 

H.  Herschell 







J.  Bloxham 

ST.  \ 


ST.  P 

E.  LU8H 


W.  Lubbock 


C.  Parker 


T.  Wallis 


G.  Whiteman 


R.  S.  Massbt 




W.  Stalkartt 


B.  Squire 




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Du  each  Share, 

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against  De])osit 


»,  >iMi  wi:i  t»eposiior3  be  entitled  tc 

)  any  of  the  usual  tacilities   of  a  Ci 

irrent  Account. 

A  receipt  is  given  for  each  deposit,  which  is  not  transferable,  and  must  be  surrendered  on  repay- 
ment of  the  amount,  according  to  the  condlfioiis  printed  thereon.  Circular  Notes  of  £10,  £25, 
and  £50,  are  issued  for  the  use  of  Travellers,  payable  in  the  principal  Towns  of  Europe,  Asia, 
Africa,  America,  and  Australasia.  They  are  issued  free  of  ^expense,  and  are  payable  by  the 
Agents  abroad,  at  the  exchange  pf  the  day,  without  any -deduction  whatever  for  Commission. 
Letters  of  Credit  are  also  granted  on  -Wie  chief  Town  and  Cities  abroad.  They  may  be  obtained 
at  the  Bank  in  Loth  bury,  or  any  of  its  Branches.    Thb  Officers  of  the  Bank  are  bound  not  to 

YB   18123 





3otntles0  at  all  XTwelve  Cmers^ 


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.  Deposit .    . 

.res  Safe  Deposit 

y-^Gi  30O0    ^^avy  Stores  Safe 

'  ^  7^  '^^^Sk  of  Athens  Safe  Deposit 
Hull  Safe  Deposit  for  the  Ocean  Accident  and 
Guarantee  Corporation,  Ltd. 

JKatner  Steel  Bankers^  JDoors^ 

Plate  and  Strong  Room  Doora^ 

Jewellery  SafeSy  &c,y  <Cc.,  Stc^ 

Gatalodues  jfree  on  BppUcation. 

n,  MOORGATE  ST.,  E.G.